Utilising Capacity Efficiently (AQA A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What are the two main capacity situations businesses need to manage?
What are the two main capacity situations businesses need to manage?
Excess capacity & lack of capacity
What problem occurs when a business runs below optimal capacity?
What problem occurs when a business runs below optimal capacity?
Unit costs increase & resources are wasted
What happens when a business consistently runs above optimal capacity?
What happens when a business consistently runs above optimal capacity?
Quality issues & employee burnout
Which strategy helps increase sales to use excess capacity?
Which strategy helps increase sales to use excess capacity?
Marketing campaigns & extension strategies
Why is reducing capacity considered a serious decision?
Why is reducing capacity considered a serious decision?
It cannot easily be reversed
What is an alternative use of spare capacity instead of leaving facilities idle?
What is an alternative use of spare capacity instead of leaving facilities idle?
Introducing new products or leasing space
What is a key benefit of outsourcing when facing lack of capacity?
What is a key benefit of outsourcing when facing lack of capacity?
Quick solution without investing in new capacity
When should a business invest in permanent new capacity?
When should a business invest in permanent new capacity?
When high demand is expected long-term
What is dynamic pricing?
What is dynamic pricing?
Flexible prices based on market demand
Which business uses dynamic pricing by charging more during school holidays?
Which business uses dynamic pricing by charging more during school holidays?
Airlines