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16. Building capacity when demand exceeds current capacity is an example of a ca

ID: 391572 • Letter: 1

Question

16. Building capacity when demand exceeds current capacity is an example of a capacity strategy leading Maye B. taxing C. tracking D. following E. feeling 17. If unit price increases as output volume increases, a system is experiencing.. A. price elasticity e economy of scale C. diseconomy of scale D. re-economy of scale E. reverse economy of scale 18. When considering system capacity metrics, which of the following will be the highest? A. Effective Capacity B. Design Capacity C. Actual Output D. Cannot be determined from the information 19. Utilization is defined as the ratio of A Actual output to effective capacity e Actual output to design capacity C. Design capacity to effective capacity D. Effective capacity to actual output 20. Cycle time is... the average number of minutes for one unit of a good or service to be produced by the system. B. C D. E. how many units of a good or service are produced per unit of time by the system. the ratio of input rate to output rate the ratio of good inputs to outputs the ratio of good outputs to inputs

Explanation / Answer

16. The correct answer is option D.

The capacity strategies include leading, following and tracking. Leading refers to building capacity when it is anticipated that the future demand increases. Following refers to building capacity when the demand exceeds current capacity. Tracking means adding capacity in small increments to keep pace with increasing demand.

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