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In what ways does corporate strategy affect capacity decisions?
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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