In a service setting,capacity decisions are largely about managing trade-offs between carrying too much inventory versus carrying too little inventory.

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In a service setting, capacity decisions are more about managing the trade-offs between the cost of having too much service capacity (e.g., idle employees, underutilized resources) versus the cost of having too little service capacity (e.g., long customer wait times, lost sales), rather than managing inventory levels, which is more applicable to manufacturing or product-centric operations.

In a Service Setting,capacity Decisions Are Largely About Managing Trade-Offs