Which of the Following Factors in Managing Demand and Capacity

question 14

Multiple Choice

Which of the following factors in managing demand and capacity does NOT lead to provider gap 3,failure to deliver what was designed and specified?

• A) Lack of communication between contact personnel and company management
• B) Under use of service capacity
• C) Failure to smooth the peaks and valleys of demand
• D) Overuse of service capacity
• E) The attraction of an inappropriate customer mix in an effort to build demand

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Definitions:

Fair Value Hedge

A hedge that protects against changes in the fair value of an asset or liability or an unrecognized firm commitment.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Mexican Pesos

The currency of Mexico, represented by the symbol $ or MXN, used for all financial transactions within the country.

Forward Contract

A customized contractual agreement to buy or sell an asset at a specified price on a future date, used to hedge against price movements.