Which One of the Following Is an Example of a Modern

question 3

Multiple Choice

Which one of the following is an example of a modern capacity strategy?

• A)construct large plants that perform all the value adding activities
• B)produce more than the actual demand to minimize customer dissatisfaction
• C)build large specialized plants to concentrate all the tasks at one place
• D)construct smaller and more specialized plants that focus on a few tasks
• E)produce less than the actual demand to reduce the costs of operation

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Definitions:

Expected Value

The average of all possible outcomes of a random variable, weighted by their respective probabilities.

Economic Assumptions

Hypotheses about the future economic condition that are used for planning and budgeting purposes.

Level of Expansion

Refers to the scale and scope of growth activities undertaken by a company to increase its business operations.

Z Score

A value's relationship to the mean of a series of values is depicted as being a certain number of standard deviations away from the average.