The Capacity Management Approach Where a Firm Builds Facilities to Produce

question 78

Multiple Choice

The capacity management approach where a firm builds facilities to produce a relatively stable output of products over time in a very efficient manner and facilities to produce a widely varying volume and variety of products,but at a higher unit cost is

• A)time flexibility from workforce.
• B)the use of seasonal workforce.
• C)the use of subcontracting.
• D)the use of dual facilities-dedicated and flexible.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from profits.

Mergers

The voluntary amalgamation of two or more corporations to form a new entity, sharing resources, liabilities, and profits.

Horizon Problem

A situation in decision-making where the choice is influenced by the limited timeframe considered for the outcome.

Share-Based Remuneration

Compensation provided to employees or other parties in the form of equity shares in the company, often used to align the interests of the employees with those of the shareholders.