Week4 Dq1

NameUniversityCourseTutorDateIntroductionCapacity aims atomic number 18 critical components of any production sector symmetry to Leoncini and Montresor (2008 : 33-36 , strength level refers to a match between a nation s or enterprise s production railroad outturn and its installed equipment . It is meaning(a) for any inviolable to know its optimal substance in to have knowledge on the getup to produce , which give match the maximization of using the equipment installed in the firm This helps the firm to prevent instances of under- role of the br equipment present . Under-utilization occurs when firms produce lesser output than equipment can handle . The overuse of the alive equipment is cognize as excess electrical condenser (Tirole 2007 : 318-321 . Both excess capacity and under-utilization confront in might , since resources present are over-utilized and underutilized respectivelyCapacity levels are important in analyzing the efficiency of using factors of production .

This enables the direction to take measures which improve the utilization of these factors to achieve optimal capacity . In case there is either excess capacity or under-utilization there is require to multifariousness the capacity levels . in that location are several factors which are considered when making the decision to change the capacity levelsFactors which are considered when ever-changing the capacity levelsPresent and future market trendsA firm should study its m arket before coming up with a decision on ch! anging the capacity level . The firm should study the existing market demand in to determine if the present output matches the market demand (Handfield 2006 : 204-207 . Predictions on...If you requirement to get a replete essay, order it on our website: BestEssayCheap.com

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