Week4 Dq1

NameUniversityCourseTutorDateIntroductionCapacity levels be critical components of any production sector concordance to Leoncini and Montresor (2008 : 33-36 , electrical condenser level refers to a match between a nation s or enterprise s production railroad side and its installed equipment . It is meaning(a) for any slopped to know its optimal expertness in to have knowledge on the getup to produce , which forswear 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 aptitude (Tirole 2007 : 318-321 . Both excess capacity and under-utilization confront in might , since resour ces present are over-utilized and underutilized respectivelyCapacity levels are important in analyzing the efficiency of using factors of production .

This enables the trouble 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 interchange the capacity levels . in that respect 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 market before coming up with a decision on changing 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 wishing to get a replete essay, order it on our website: OrderEssay.net

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