Describe the most important questions to be answered concerning facilities decisions.

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Pages: 1
Subject: Uncategorized

The ABC Cement Corporation produces a high-quality cement that is supplied to construction companies. The potential demand and the probability of each potential demand quantity are given for the upcoming year:

Demand in Tons

Probability

500,000

0.3

250,000

0.4

300,000

0.3

Assuming manufacturing capacity of 700,000 tons, what is the estimated capacity cushion ?

And

Describe the most important questions to be answered concerning facilities decisions. Apply the questions to a fast-food restaurant chain with expanding demand.

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