A Firm Produces 12 Different Services and Has Capacity to Service

question 11

Multiple Choice

A firm produces 12 different services and has capacity to service 360,000 customers per year.A total of 24 service workers are employed.If 270,000 customers receive service during a particular year,what is the capacity cushion during that year?

• A) 25%.
• B) 50%.
• C) 75%.
• D) There is not enough information to determine the answer.

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Definitions:

SCM

Supply Chain Management, the oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer.

Just-In-Time Production

A manufacturing methodology aimed at reducing inventory costs by producing goods only as they are needed in the production process or by the customer.

Inventory Replenishment

The process of adding stock to inventory to maintain desired levels and fulfill customer orders without delay.

Process Excellence

Continuous improvement of business processes to achieve superior performance and efficiency.