Certified Production & Operations Manager (POM) Practice Exam

Are capacity decisions typically permanent once made?

1. True

2. False

The correct answer is: False

Capacity decisions are generally not permanent once made because they often need to be reassessed and adjusted in response to changes in market demand, technological advancements, or shifts in business strategy. Organizations must remain agile and adaptable, as operational realities can fluctuate significantly over time. For instance, an increase in product demand may require a business to expand its capacity, while a decline might necessitate a reduction or optimization of existing capacity. Additionally, businesses may invest in new technologies or processes that allow for more efficient use of resources, thereby altering their capacity needs. Thus, capacity decisions should be viewed as part of a dynamic process where continuous evaluation and adaptation are essential for maintaining operational efficiency and competitiveness.