The amount of capacity that is unused on average refers to what term?
A)Capacity cushion
B)Outsourced capacity
C)Peak capacity
D)Effective capacity
E)Capacity factor

Question

Quizplus · Accepted Answer

Capacity cushion is the amount of excess capacity a firm has above its expected demand. It is the difference between maximum capacity and expected demand. This excess capacity is often used as a contingency measure to manage demand surges or business disruptions. The amount of capacity that is unused on average is an important metric of the capacity cushion a firm maintains. It indicates the level of slack that is built into the system to absorb changes in demand.

The Amount of Capacity That Is Unused on Average Refers