Capacity decisions are usually linked with other decision areas. If a system is well balanced, which one of the following changes requires a larger- capacity cushion?
A) The capital intensity of the process is increased.
B) Yield losses in the production process are reduced.
C) The company promises faster delivery times to customers.
D) Schedules for production are more stable.

Question

Quizplus · Accepted Answer

A larger capacity cushion is needed when a company promises faster delivery times to customers to accommodate potential fluctuations in demand and ensure timely delivery.

Capacity Decisions Are Usually Linked with Other Decision Areas