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Q14PE.

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Operations And Supply Chain Management
Found in: Page 585
Operations And Supply Chain Management

Operations And Supply Chain Management

Book edition 14th
Author(s) F. Robert Jacobs
Pages 800 pages
ISBN 9780078024023

Short Answer

None of the techniques for determining order quantity consider this important non-economic factor that could make the order quantity infeasible.

Capacity.

See the step by step solution

Step by Step Solution

Step 1: Capacity

Capacity is defined as the duty carried in a procedure for a particular time and is known as ‘time’.

Step 2:  How is order quantity determined?

Order quantity and capacity are measured by order size, quantity, and demand rate. It helps the organization to fulfil all of their order without any over-expenditure on the production.

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