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Chapter 4: Q14PE. (page 585)

None of the techniques for determining order quantity consider this important non-economic factor that could make the order quantity infeasible.

Short Answer

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Capacity.

Step by step solution

01

Capacity

Capacityis defined as the duty carried in a procedure for a particular time and is known as 鈥榯ime鈥�.

02

 How is order quantity determined?

Order quantity and capacity are measured by order size, quantity, and demand rate. It helps the organization to fulfil all of their order without any over-expenditure on the production.

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