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Solution Library
Capacity Concept in Operations Management
Question
Consider a process that consists of two steps A and B, with capacities x and y units per hour, respectively. The capacity x is larger than the capacity y. Each unit is first processed by step A and then by step B. Consider two separate and different options to change this process:
I. The capacity of step A increases from x to 2x.
II. The capacity of step B increases from y to 2y.
Choose the only alternative that is unambiguously correct.
a) After option I is implemented, the capacity of the process increases to 2x.
b) After option II is implemented, the capacity of the process increases to 2y.
c) After option II is implemented, the capacity of the process increases to x.
d) Option II increases the capacity of the process more than option I.
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