Finding the overall capacity level of capital-intensive resources to best support the firm's long-term strategy is?
A) Capacity
B) Capacity utilization rate
C) Strategic capacity planning
D) Economies of scale
E) Best operating level

Question

Quizplus · Accepted Answer

Strategic capacity planning involves determining the overall capacity level of capital-intensive resources that would best support the firm's long-term strategy. It involves analyzing demand forecasts, market trends, and future growth opportunities to make informed decisions about investment in new resources, improvements in existing resources, and management of capacity utilization rates. Option A refers to the total amount of output a company can produce, while option B refers to the percentage of total capacity that is currently being utilized. Option D refers to the cost advantages associated with large-scale production, and option E refers to the level of capacity utilization that achieves the lowest unit cost.

Finding the Overall Capacity Level of Capital-Intensive Resources to Best