Question

Capacity management is used by a service organization in order to:a) facilitate the use of off-peak pricing more frequently.b) ensure that its capacity to supply services exceeds the consumer demand for its services.c) ensure that optimal use of the its assets are made to maximize the return on investment.d) increase its idle production capacity.e) strengthen the perishable and inseparable nature of services.

Answer 1

c) ensure that optimal use of the its assets are made to maximize the return on investment.

Step-by-step explanation:

Capacity management is the management of efficiency of the company to manage the total inputs properly in order to get the maximum output from them.

Here in the chosen statement it is clearly stated that the use of resources of the organization optimally to get the maximum return on the total investment, is capacity management.

Therefore, it is all about performing good in any conditions of market, whether favorable or unfavorable.

Therefore, correct option is:

Statement C