QUESTION: 141

Which statement is best as it relates to PROTECTIVE CAPACITY?

The capabilities of a system constraint
extra capacity used to protect against fluctuations in demand from the system constraint.
the capabilities of the gateway workcenter
capacity that should always be utilized

Answer(s): B

Suitability deals with the overall rationale of the strategy. The key point to consider is whether the strategy would address the key strategic issues underlined by the organization's strategic position. For instance:

Does it make economic sense?
Would the organization obtain economies of scale, economies of scope or experience economy?
Would it be suitable in terms of environment and capabilities?
All of these

Answer(s): D

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