2. List some practical limits to economies of scale. In other words, when should a plant stop
growing? 3. What are some capacity balance problems faced by the following organizations or facilities?
a.An airline terminal
b.A university computing lab
c.A clothing manufacturer
4. At first glance, the concepts of the focused factory and capacity flexibility may seem to
contradict each other. Do they really? 5. Management may choose to build up capacity in anticipation of demand or in response to developing demand. Cite the advantages and disadvantages of both approaches.
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