Which of the following is a short-term capacity decision?
A) Expanding the capacity and the number of beds in a hospital
B) Determining the amount of warehouse space to rent for a new promotional item
C) Closing down a distribution center
D) Changing the cooking technology in a chain of fast-food restaurants

Question

Quizplus · Accepted Answer

Short-term capacity decisions relate to immediate or near future timeframes, usually up to 12 months. Determining the amount of warehouse space to rent for a new promotional item is a short-term capacity decision as it will only affect the capacity for a specific period. The other options involve long-term capacity decisions as they require a significant investment and have a long-lasting impact on the business's capacity. For instance, expanding the capacity and number of beds in a hospital involves substantial financial investments, planning, and construction work, which typically takes a long time.

Which of the Following Is a Short-Term Capacity Decision