Flexibility should be valued by taking into account uncertainty in demand and economic factors.In general,flexibility will tend to
A)decrease in value with a decrease in certainty.
B)increase in value with an increase in uncertainty.
C)decrease in value with an increase in uncertainty.
D)increase in value with an increase in certainty.

Question

Quizplus · Accepted Answer

Flexibility becomes more valuable as uncertainty increases because it allows a company to adapt to changing demand and economic conditions. When there is more certainty, there is less need for flexibility as firms can plan their operations accordingly.

Flexibility Should Be Valued by Taking into Account Uncertainty in Demand