13. Select True or False

(a) Capacity planning is useful for the determination of sufficient resources so that user satisfaction can be maximized through timely, efficient and accurate responses.

(b) Utilization is the ratio of design capacity to actual output and efficiency is the ratio of effective capacity to actual output.

(c) Time and capacity are the two potential constraints in capacity planning.

(d) Capacity flexibility is defined as the ability to alter rapidly products levels or to shift production capacity quickly from one product to service to another.