When Future Demand Is Uncertain and Sequential Decisions Are Involved

question 15

Multiple Choice

When future demand is uncertain and sequential decisions are involved in capacity planning, a manager should use a:

• A) waiting line model.
• B) cash flow analysis.
• C) decision tree.
• D) gap analysis.

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Definitions:

Customers Served

The number of clients or customers that a business has provided its products or services to within a specific timeframe.

Revenue

The total amount of money a business generates from its operations, often from the sales of goods or services before any expenses are subtracted.

Spending Variances

The differences between the budgeted or planned amounts of spending and the actual amounts spent.

Customers Served

The total number of customers who receive service or products from a business within a given time period.