Capacity Decisions Must Have Three Elements in Place

question 7

Multiple Choice

Capacity decisions must have three elements in place:

• A)managerial support,market rationalization,and P/OM knowledge.
• B)P/OM knowledge,market rationalization,and financial support.
• C)market rationalization,HRM support,and P/OM knowledge.
• D)financial support,market rationalization,and managerial support.

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Definitions:

Prevention Cost

Expenses incurred to avoid defects in products or services, including costs related to quality training and product design improvements.

Quality Cost Report

A report detailing the costs associated with avoiding poor quality, identifying defects, and repairing defective products, categorized into prevention, appraisal, and failure costs.

Throughput Time

The amount of time it takes for a product to go through the production process, from start to finish, including both processing and waiting time.

Delivery Cycle Time

The total time taken from receiving a customer order to the delivery of the product or service to the customer.