What risk arises when demand is operating between optimum and maximum capacity?
A)Service quality may suffer, leading to dissatisfied customers
B)Customer attitudes may improve when they see how busy the company is
C)Service may improve above the optimum level, surprising customers
D)Productive resources may be underused, resulting in low productivity
E)Customers may perceive the company as unlikely to survive

Question

Quizplus · Accepted Answer

When demand is operating between optimum and maximum capacity, the service quality may suffer as the company may struggle to keep up with the demand, leading to dissatisfied customers. It is important to maintain the balance between capacity and demand to avoid service quality issues.

What Risk Arises When Demand Is Operating Between Optimum and Maximum