IntLog Capacity

Large fluctuations in capacity negatively effects quality.

• true

• false

What is bad for revenues?

• capacity = demand

• more capacity than demand

• less capacity than demand

Excess capacity decreases speed of response to demand.

• true

• false

Operations are the most flexible if ...

• capacity level is higher than demand

• capacity utilization is 100%

• demand is higher than capacity level

Dependability ...

• is not affected by capacity levels

• is higher if we have excess capacity

• is higher if capacity utilization is higher

We can chase demand by...

• hiring and firing employees

• piling up products

• scheduling promotions

• limiting access to product/service

We can reduce demand fluctuations by...

• keeping inventories

• outsourcing

• differentiating price

• requiring employees to do overtime

What is better for unit cost?

• more capacity than demand

• less capacity than demand