Which of the Following Is an Example of Utilizing Capacity

question 60

Multiple Choice

Which of the following is an example of utilizing capacity effectively?

• A)Building a plant large enough so that production can be increased as demand increases.
• B)Hiring extra temporary employees to work extended hours during Christmas season at a retail store.
• C)Having all employees of a donut shop work a regular 8-hour shift every day.
• D)A caterer having a limited number of chefs working during the week and on weekends.
• E)An airline selling 20% more tickets for a flight than their airplane has available seats.

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Definitions:

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, within an economy or a specific sector.

Steel Manufacturer

A company involved in the production and processing of steel, an alloy of iron and carbon, for various industrial uses.

Jewelry Manufacturer

A business or enterprise that specializes in the production and fabrication of jewelry articles using various materials, techniques, and designs.

Just-In-Time (JIT) System

Broad management philosophy that reaches beyond the narrow activity of inventory control to influence the entire system of production and operations management.