Question

Why is the capacity decision important??

Answer 1

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The importance of capacity decisions relates to their potential impact on the ability of the organization to meet future demand for products and services; capacity essentially limits the rate of output possible. ... Ideally, capacity and demand requirements will be matched, which will tend to minimize operating costs.

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Answer 2

Explanation:

The capacity decisions within a company are very important because they help determine the limit of output and provide a major insight to determining operating costs.