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Operations Management: Processes and Supply Chains, 12th Edition by Larry P. Ritzman, Manoj K. Malhotra, Lee J. Krajewski

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Learning Goals in Review

Learning Goal

Guidelines for Review

MyLab Operations Management Resources

  1. Define long-term capacity and its relationship with economies and diseconomies of scale.

Review the section “Measures of Capacity and Utilization,” pp. 140, and understand why and how capacity is measured in high-volume processes is different from its measurement in low-volume, flexible processes. Also see the section on “Economies of Scale” and “Diseconomies of Scale,” pp. 140141. Figure 4.1 illustrates the relationship between average unit cost and output rate, and shows different output ranges over which economies and dis-economies of scale can occur.

Video: Gate Turnaround at Southwest Airlines

  1. Understand the main differences between ...

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