Briefly describe how uncertainty affects capacity decisions

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Capacity management in businesses is a function of their operations and environment. In today’s business world, evaluating and managing capacities is becoming significantly more difficult. Therefore, managers need to do a balancing act to reduce costs and effectively utilize available capacities. Question:

• Briefly describe how uncertainty affects capacity decisions.

• Why is capacity planning for a service more challenging than it is for a goods producer? How do capacity decisions affect productivity?

Reference no: EM131375812

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