Design capacity may be increased by identifying and reducing bottlenecks.
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Q7: Potential capacity is the capacity that can
Q8: Capacity utilization is the amount of effective
Q9: Capacity utilization always exceeds design capacity.
Q10: Efficiency is the amount of effective capacity
Q11: Utilization in services is usually high because
Q13: Capacity planning is important to businesses primarily
Q14: Excess capacity is always better for the
Q15: Higher contribution margins lead firms to invest
Q16: Lower margin products or services do not
Q17: The greater the uncertainty and the fluctuation,
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