Question $(2$ points$)$

All the following statements are false, except:

Question optionst

Capacity decisions often involve a long$-$term commitment of resources which, when implemented, are neither

difficult nor impossible to modify without major added costs

Short$-$term capacity decisions that confront managers does not include capacity timing and sizing decisions

Long$-$term capacity decisions that confront managers include workforce size.

Capacity being the maximum rate of output of a process can be expressed solely by only output measures.

Input measures of capacity are inherently more accurate than output measures of capacity

Question $(2$ points$)$

All the following statements are true, except:

Question options:

A$)$ Larger capacity cushions are particularly vital for front office processes where customers expect fast service

times.

B$)$ A larger capacity cushion may be preferred if a process is highly capital intensive cing construction costs

C$)$ A larger capacity cushion can help firms uncover process inefficiencies, so they can find ways to correct them.

D$)$ Capacity cushions may be lowered if companies smooth the output rate by raising prices when inventory is low

and decreasing prices when it is high

E$)$ Companies that have considerable customization tend to have larger capacity cushions

F$)$ B and C