Precise Capacity Design or the Rate of Service Utilization (ρ)

question 29

Multiple Choice

Precise capacity design or the rate of service utilization (ρ) , is application specific.

• A)It could be close to 100% for a sports arena.
• B)It could be as low as 0.5 for hospital emergency room.
• C)As the degree of uncertainty in demand increases, higher ρ may be appropriate.
• D)A, B and C are correct.
• E)Only A and B are correct.

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Definitions:

Shipping Cost

This term refers to the expense associated with the logistics of transporting goods from the seller to the buyer.

Just-In-Time Practices

Manufacturing and inventory strategy where materials and products are produced or acquired only as needed for use, reducing waste and inefficiencies.

Railroads

Transportation systems comprising tracks, trains, and supporting infrastructure that serve as a method for moving goods and people over long distances.

Postponement

The delay of any modifications or customization to a product as long as possible in the production process.