Capacity planning is generally observed in three time durations: short, intermediate, and indeterminate. Group of answer choicesTrueFalse
Question
Capacity planning is generally observed in three time durations: short, intermediate, and indeterminate. Group of answer choicesTrueFalse
Solution
False.
Explanation:
Capacity planning is typically divided into three time durations, but they are usually referred to as short-term, intermediate-term, and long-term, not indeterminate.
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Short-term: This usually covers a period up to 6 months and involves making adjustments to capacity to meet changes in demand.
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Intermediate-term: This covers a period from 6 months to 2 years and involves decisions such as hiring or laying off employees, and purchasing or leasing equipment.
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Long-term: This covers a period of more than 2 years and involves decisions related to construction of new facilities, entering new markets, or exiting existing ones.
So, the statement "Capacity planning is generally observed in three time durations: short, intermediate, and indeterminate" is false.
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