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capacity cushion

What is a capacity cushion and why would a firm have one?

In what ways can management influence the arrival patterns of waiting lines?

Describe some of the generic differences between the production of good s and services

What is the criterion for determining whether a project activity is on the "critical path" or not?

What does it mean when we say that a process is capable?

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What is a capacity cushion and why would a firm have one?
The capacity cushion is the reserved capacity that a firm has to satisfy an unexpected increase in demand or temporary breakdown in production capacity. A firm must have one so that it is able to satisfy its customers when there is a sudden spurt in demand. Similarly, when there is an unexpected stoppage of production, capacity cushion helps the company to satisfy its most important demand.
In what ways can management influence the arrival patterns of waiting lines?
The management can influence the arrival patterns of waiting lines through instructions, training, and structures. For instance, ...

Solution Summary

capacity cushion is discussed very comprehensively in this explanation

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