15. Andrea Arenas is the owner of 2 Places at 1 Time, a concierge company going

Question

15. Andrea Arenas is the owner of 2 Places at 1 Time, a concierge company going to the post office for people who are too busy to perform these tasks She has often been hired and now many of her major clients are providing perks like her service for the currently experienclng She and her staff of 60 perform everyday services such as waking the dog, picking up cleaning,waing in fact, all of her employees and equipment are fuily being used. O off-peak pricing O idle production capacity O static demand O capacity marketing O capacity inventory employees. Her staff is overworked and she will soon hire more employees to il demand Andree is not 3 5 0

Explanation / Answer

15. Andrea is not currently experiencing ____; in fact, all of her employees and equipment are fully being used.

idle production capacity

This is because all the resources of production are being used in full.

16. WIth services, inventory carrying costs are more subjective and are related to

idle production capacity

This is when the service provider is available but there is no demand for the service. Inventory carrying costs of services depend on the cost of employees or equipment.

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