Facilities with high capacity utilization are often seen as:

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Facilities with high capacity utilization are regarded as optimal in production because they indicate that the facility is using its resources effectively and producing at or near its maximum output capabilities. This high level of utilization suggests that the production processes are well-tuned and that the facility is likely meeting demand efficiently.

When a facility operates at high capacity utilization, it generally implies lower per-unit costs, as fixed costs are spread over a larger number of units. This can enhance the overall efficiency of the production process, making the operation more profitable. Organizations strive for high capacity utilization to capitalize on their resources and maximize return on investment.

While it is worth noting that extremely high capacity utilization can lead to potential risks, such as operational failures or maintenance issues due to wear and tear, the primary perspective in this context emphasizes that high utilization reflects optimal production capability.

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