Allocating too much capacity to a location results in
A)poor utilization,and as a result,higher costs.
B)high utilization,and as a result,higher costs.
C)poor utilization,and as a result,lower costs.
D)high utilization,and as a result,lower costs.

Question

Quizplus · Accepted Answer

Allocating too much capacity to a location leads to poor utilization as the resources are not fully utilized, which results in higher costs due to idle resources. For example, if a facility has more machines or equipment than it needs to operate, it would lead to inefficiencies and increased operating costs.

Allocating Too Much Capacity to a Location Results in