Which of the following would be a characteristic of a facility with little excess capacity?
A) Allows a facility to be very flexible and to respond to wide swings in the demands placed on it
B) Costs money and therefore can decrease efficiency
C) Requires proximity to customers and the rest of the network
D) Will likely be more efficient per unit of product it produces
E) none of the above

Question

Quizplus · Accepted Answer

A facility with little excess capacity operates close to its full capacity, which means it is likely to be more efficient per unit of product it produces since fixed costs are spread over more units. However, it may not be able to respond to sudden changes in demand or production disruptions.

Which of the Following Would Be a Characteristic of a Facility