Which one of the following statements about capacity is best?
A) Companies with flexible flow processes tend to have small-capacity cushions.
B) Companies with high capital costs tend to have large-capacity cushions.
C) Companies that have considerable customization tend to have larger-capacity cushions.
D) Constant demand rates require larger-capacity cushions.

Question

Quizplus · Accepted Answer

Customization requires greater flexibility in production processes, which often leads to larger capacity cushions to accommodate varying demand. Choices A, B, and D are not necessarily true for all companies and are too broad in their scope.

Which One of the Following Statements About Capacity Is Best