A facility with little excess capacity will likely be no more or less efficient per unit of product it produces than one with a lot of unused capacity.
Understand the Problem
The question discusses the efficiency of a facility with low excess capacity compared to one that has a significant amount of unused capacity, potentially examining concepts related to production efficiency and capacity utilization.
Answer
False
The statement is false. A facility with little excess capacity is likely to be more efficient per unit of product it produces compared to one with a lot of unused capacity.
Answer for screen readers
The statement is false. A facility with little excess capacity is likely to be more efficient per unit of product it produces compared to one with a lot of unused capacity.
More Information
Facilities operating near full capacity efficiently use their resources, reducing idle time and maximizing output.
Tips
A common mistake is assuming excess capacity equals flexibility; however, it often leads to inefficiencies.
Sources
- Chapter-3-supply-chain-drivers-and-metri-cvpsiz-cktn-scmsz-O47x - cliffsnotes.com
- Supply Chain Management - 4th edition - cag.edu.tr
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