Capacity Planning Decisions Deal Implicitly with Decisions on the Cost

question 22

True/False

Capacity planning decisions deal implicitly with decisions on the cost of making consumers wait and the extent to which these costs can be borne.

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Definitions:

Real Rate

This is the interest rate adjusted for inflation, representing the real cost of borrowing and the real yield to lenders or investors.

Interest

The cost of borrowing money, typically expressed as an annual percentage rate, or the return on investment for savings.

Inflation

The frequency at which the overall cost of goods and services elevates, depreciating the purchasing power.

Cost-Of-Living Adjustment

An increase in income or benefits to compensate for a rise in the prices of goods and services, maintaining the purchasing power.