A Command System Uses a Group of Planners or Central

question 50

True/False

A command system uses a group of planners or central authority to make basic economic decisions.

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Definitions:

Production Capacity

The maximum output that a manufacturing facility can produce under normal conditions, determined by available resources and constraints.

Overbooking Decision

A strategic choice made by companies, especially in hospitality and transportation, to sell more units than are available, based on anticipated cancellations.

Supply Chain

The network of all businesses involved in creating and distributing a product, from raw materials to finished goods delivered to the customer.

Capacity Shortage

A situation where the demand for a product or service exceeds the production capacity of the facilities designed to supply it.