Allocating too much capacity to a location results in? **Question:**Allocating too much capacity to a location results in:a. poor utilization, and as a result, higher costs. b. high utilization, and as a result, higher costs. c. poor utilization, and as a result, lower costs. d. high utilization, and as a result, lower costs. **Explanation:**In operational management, effective capacity allocation is crucial to optimize costs. Too much capacity can lead to poor utilization where resources are underused, often resulting in higher costs due to maintaining unused capacity. Conversely, optimal capacity leads to high utilization, meaning resources are efficiently used, which can lower operational costs. The correct understanding helps in strategic planning and resource management to ensure cost-effectiveness and efficient operations.

The capacity allocation consideration decides how best to utilize resources that help to fulfill…

Allocating too much capacity to a location results in a. poor utilization, b. high utilization, c. poor utilization, d. high utilization, and as a result, higher costs. and as a result, higher costs. and as a result, lower costs. and as a result, lower costs.

Allocating too much capacity to a location results in a. poor utilization, b. high utilization, c. poor utilization, d. high utilization, and as a result, higher costs. and as a result, higher costs. and as a result, lower costs. and as a result, lower costs.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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