The Purpose of Capacity Control Is ______

question 17

Multiple Choice

The purpose of capacity control is ______.

• A)to achieve as balanced a workload as possible among the various work centers
• B)to ensure there is no shortage or surplus of inventory
• C)to ensure there is no stock out or excess of finished goods
• D)to ensure excess capacity is productively used and not wasted

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Definitions:

Revenue Management

Strategic use of pricing to maximize a company's revenue by selling the right product to the right customer at the right time for the right price.

Supply Chain Surplus

The difference between the value generated for the end customer and the total cost across the supply chain, indicating the chain’s efficiency.

Sourcing Processes

The activities involved in finding, evaluating, and engaging suppliers of goods and services.

Effective Sourcing

The process of identifying and procuring goods and services from external sources that meet the company's standards in quality, price, and delivery time.