Fitzsimmons & Fitzsimmons (2008) compare 2 capacity management strategies. Part of their comparison is presented below:...

 

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Fitzsimmons & Fitzsimmons (2008) compare 2 capacity management strategies. Part of their comparison is presented below: Customer waiting Labour skill level Forecasting Capacity plan: Level Capacity Generally low High Long run Chase Demand Moderate Low Short run a) Motivate why the forecasting horizon is longer for Level capacity plans. b) Which assumption is used to reach the conclusion that a level capacity plan has a shorter customer waiting time? Fitzsimmons & Fitzsimmons (2008) compare 2 capacity management strategies. Part of their comparison is presented below: Customer waiting Labour skill level Forecasting Capacity plan: Level Capacity Generally low High Long run Chase Demand Moderate Low Short run a) Motivate why the forecasting horizon is longer for Level capacity plans. b) Which assumption is used to reach the conclusion that a level capacity plan has a shorter customer waiting time?

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Step 12 a The forecasting horizon for level capacity plans is longer because they involve planning ... View the full answer