Involves small, frequent jumps in capacity

Appropriate measures for estimating capacity requirements for used for low$-$volume flexible processes

Occurs when the average cost per unit decreases as the facility's size increases

Meets capacity shortfalls with overtime, temporary workers, subcontracting, and stockouts

An example of a factor that usually calls for a smaller capacity cushion

$1.$

Diseconomies of scale

$2.$

Economies of scale

$3.$

Short$-$term strategic capacity management

$4.$

Long term strategic capacity management

$5.$

Matching strategy

$6.$

Lagging strategy

$7.$

Leading strategy

$8.$

Inputs

$9.$

Outputs

$10.$

Design capacity

$11.$

Effective capacity

$12.$

Uncertain demand

$13.$

More reliable equipment