Question

Capacity planning is difficult because building capacity can take a long time and forecasts are often uncertain when capacity levels are decided. True or False

Answer 1

Capacity planning is difficult because building capacity can take a long time and forecasts are often uncertain when capacity levels are decided.

Step-by-step explanation:

Capacity planning is indeed difficult because building capacity can take a long time and forecasts are often uncertain when capacity levels are decided. This is because it is challenging to accurately predict the future demand for goods and services. For instance, if a company decides to build a new factory to expand production capacity, it may take several years to complete the construction and hire workers. However, during this time, market conditions may change, and the initial forecasts may no longer be accurate.