For the next six months, Kurtz Company projects the following information (in un
ID: 2483580 • Letter: F
Question
For the next six months, Kurtz Company projects the following information (in units).
July
Aug.
Sept.
Oct.
Nov.
Dec.
Retail demand
300
300
450
450
600
600
Dealer demand
600
750
900
1,050
1,200
1,350
Shop capacity
1,500
1,500
1,500
1,500
1,500
1,500
Painting capacity
1,050
1,050
1,050
1,800
1,800
1,800
Demand drives production for that month and cannot be carried over from one month to another. Retail customers are satisfied first.
Painting capacity appears to be:
Select one:
a. Short-term capacity.
b. Intermediate-term capacity.
c. Long-term capacity.
d. Total demand.
July
Aug.
Sept.
Oct.
Nov.
Dec.
Retail demand
300
300
450
450
600
600
Dealer demand
600
750
900
1,050
1,200
1,350
Shop capacity
1,500
1,500
1,500
1,500
1,500
1,500
Painting capacity
1,050
1,050
1,050
1,800
1,800
1,800
Explanation / Answer
The answer is Short term capacity
Explaination: The capacity of painting changes from 1050 to 1800 after three months and hence it is flexible and cannot be termed as long term capacity.