To determine which option is not a basic decision for altering capacity, let's analyze each one:

1. **Hire and lay off permanent workers**: This is a common method to adjust capacity. By hiring more workers, a company can increase its capacity, and by laying off workers, it can decrease capacity.

2. **Use back orders**: Back orders involve delaying the fulfillment of orders until the product is available. This is more of a demand management strategy rather than a direct method to alter capacity.

3. **Keep finished-goods inventory**: Maintaining an inventory of finished goods can help manage fluctuations in demand, but it does not directly alter the production capacity.

4. **Use overtime**: Utilizing overtime allows a company to temporarily increase its capacity by having existing workers work additional hours.

Based on the analysis, the option that is not a basic decision for altering capacity is:

**Use back orders**.

Question

To determine which option is not a basic decision for altering capacity, let's analyze each one:

1. **Hire and lay off permanent workers**: This is a common method to adjust capacity. By hiring more workers, a company can increase its capacity, and by laying off workers, it can decrease capacity.

2. **Use back orders**: Back orders involve delaying the fulfillment of orders until the product is available. This is more of a demand management strategy rather than a direct method to alter capacity.

3. **Keep finished-goods inventory**: Maintaining an inventory of finished goods can help manage fluctuations in demand, but it does not directly alter the production capacity.

4. **Use overtime**: Utilizing overtime allows a company to temporarily increase its capacity by having existing workers work additional hours.

Based on the analysis, the option that is not a basic decision for altering capacity is:

**Use back orders**.

Knowee AI · Accepted Answer

To determine which option is not a basic decision for altering capacity, let's analyze each one:

1. **Hire and lay off permanent workers**: This is a common method to adjust capacity. By hiring more workers, a company can increase its capacity, and by laying off workers, it can decrease capacity.

2. **Use back orders**: Back orders involve delaying the fulfillment of orders until the product is available. This is more of a demand management strategy rather than a direct method to alter capacity.

3. **Keep finished-goods inventory**: Maintaining an inventory of finished goods can help manage fluctuations in demand, but it does not directly alter the production capacity.

4. **Use overtime**: Utilizing overtime allows a company to temporarily increase its capacity by having existing workers work additional hours.

Based on the analysis, the option that is not a basic decision for altering capacity is:

**Use back orders**.

Which one of the following is not a basic decision option for altering capacity?Multiple ChoiceHire and lay off permanent workersUse back ordersKeep finished- goods inventoryUse overtime

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