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:

Informal Social Contacts

The interactions that occur between individuals in a casual, unstructured setting, outside of formal organizational or institutional contexts.

Diffusion of Innovation

The method in which a new idea is spread via specific pathways over a period among members of a societal system.

Early Majority

The early majority consists of individuals in a market who adopt new products or innovations after a careful review, following the innovators and the early adopters, representing a significant portion of the adoption curve.

Diffusion of Innovation

The process by which an innovation is communicated through certain channels over time among the members of a social system.