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Define the resources over and under capacity.
The resources over and under capacity:
a. Over capacity: it is also called as spare capacity resources for example, staff and machines are not being totally utilised (as idle) and not operating at complete capacity.
b. Under capacity, there customer demand is higher than the maximum capacity or supply the organisation can fulfil for example, full order book, waiting lists and customer queuing.
Current and projected cash flows for Randell Global Operatons are shown below. Growth is expected to be constant after 2012, and the weighted average cost of capital is 11%. What i
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