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Which of the following statements about capacity management is not correct?

A. Capacity needs to consider both inputs and outputs.

B. Capacity utilization considers the ratio of capacity used to maximum capacity available.

C. If the company needs to be responsive in an uncertain environment. it needs to operate at 100% utilization rate.

D. Overtime is a short term capacity planning decision. E. Capacity planning has an impact on the inventory of the company.

4- When capacity utilization is above 90%

A. There is enough room to address unexpected events (like illness of machine failure)

B. None of the Answers

C. This is a good situation, since capacity utilization is high

D. Its tight to address unexpected events (illness, machine failure)