Which of the following is NOT a characteristic of capacity planning in service firms?
A)Services are generally consumed at the time they are produced.
B)It is not possible to have an inventory,or buffer stock,of services.
C)The capacity of service firms at all times has to be less than what is needed to meet demand.
D)Periodic capacity underuse is inevitable for service firms.

Question

Quizplus · Accepted Answer

This statement is not true. In capacity planning for service firms, it is important to match capacity with demand, but it is not always necessary for the capacity to be less than demand. Sometimes, a service firm may choose to have excess capacity to accommodate unexpected surges in demand or to maintain service quality during peak periods.

Which of the Following Is NOT a Characteristic of Capacity