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Most of the production facilities frequently operate below available capacity. In your opinion, why would a production manager select to keep a capacity cushion? Is it possible to have a negative capacity cushion? describe why or why not?

As a manager, how would you tie your capacity decisions to the mission and strategy of your organization? How would forecasting influence your capacity decisions? What information would you need to make a capacity decision?

Validate your answers by using illustrations and reasoning.

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