Discussion Questions
1. Explain why capacity planning is important to a business.
2. Explain the differences between design capacity and effective capacity.
3. How is capacity utilization computed, and what does it tell us?
4. What are the steps in capacity planning?
5. What are decision trees, and how do they help us make better decisions?
6. Find and discuss business examples of overcapacity and undercapacity.
7. Explain the consequences of poor location decisions for a business.
8. Find examples of good and bad location decisions.
9. Describe three advantages and three disadvantages of globalization.
10. Describe the steps used to make location decisions.
11. Describe five factors that should be considered in the location decision.
12. Explain the differences among factor rating, the load-distance model, and break-even analysis. What criteria does each method use to make the location decision?
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