Which of the following are benefits of level capacity loading?
A)Maximizes work-in-process inventory.
B)Minimizes time to setup for different products
C)Limits the flexibility to meet customer demand
D)Minimizes work-in-process inventory.
E)Maximizes work-in-process inventory

Question

Quizplus · Accepted Answer

Level capacity loading is a production planning strategy where the production is held constant and any fluctuation in demand is met through inventory and backorders. One of the primary benefits of level capacity loading is that it minimizes work-in-process inventory. Option A and E are incorrect as they present conflicting information. Option B is incorrect as minimizing setup time is a benefit of mixed-model production. Option C is incorrect as limiting flexibility goes against the principle of lean manufacturing.

Which of the Following Are Benefits of Level Capacity Loading