A Company Has Adequate Average Available Capacity but Does Not

question 227

Multiple Choice

A company has adequate average available capacity but does not maintain surge capacity. With a distribution route to manage, which of the following actions will provide the most capacity relief?

• A) Increasing order-fulfillment lead times
• B) Implementing allocation
• C) Increasing prices with a 30-day effective date
• D) Increasing product queue times

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Definitions:

Grasslands

Biomes characterized by large open areas of grasses, with very few trees, that can be found in both temperate and tropical regions of the world.

Desert

A barren area of landscape where little precipitation occurs, resulting in harsh living conditions for most plants and animals.

Jet Stream

A fast flowing, narrow air current found in the atmospheres of some planets, including Earth, typically at the altitude of the boundary between the troposphere and the stratosphere.

Tropical Cyclone

A rapidly rotating storm system characterized by a low-pressure center, strong winds, and a spiral arrangement of thunderstorms that produce heavy rain, typically forming over warm tropical oceans.