What are the reasons why organizations create capacity


1. Using a simple, hypothetical example, illustrate how the Net Present Value Analysis can be used to evaluate 2 alternatives to building new capacity.

2. What are the reasons why organizations create capacity which exceeds demand? What are the strategies used to manage excess capacity?

Question asks for two pages of hand written response

3. Draw and explain a diagram of Mass Customization. Why has this process strategy become more relevant in today’s consumer markets?

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Operation Management: What are the reasons why organizations create capacity
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