Capacity decisions often involve a long-term commitment of resources which, when implemented, are difficult or impossible to modify without major added costs.

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Capacity decisions are strategic in nature, involving long-term commitments to resources such as facilities, equipment, and labor. Once these resources are in place, changing them can be very costly and challenging, making initial capacity decisions critical for operational efficiency and flexibility.

Capacity Decisions Often Involve a Long-Term Commitment of Resources Which