In planning the long-term capacity of an operation,one should take into account:
A)Bottlenecks
B)Economies of scale
C)Economies of scope
D)Only B and C

Question

Quizplus · Accepted Answer

When planning the long-term capacity of an operation, one should take into account both economies of scale and economies of scope. Economies of scale refer to the cost advantages that result from increased production levels, while economies of scope refer to the cost advantages gained by producing a variety of products or services using the same resources. Both of these factors can have a significant impact on the long-term capacity planning of an operation, and neglecting either could result in inefficient use of resources or missed opportunities for growth. Identifying potential bottlenecks in the operation is also important, but it is only one aspect of capacity planning and should not be the sole focus.

In Planning the Long-Term Capacity of an Operation,one Should Take