In low-contact systems, capacity should be set at the level of average demand, but in high-contact systems, capacity should be set at the level of peak demand.

Question

Quizplus · Accepted Answer

In low-contact systems, variability is lower, so average demand suffices. High-contact systems face more variability and customer interaction, requiring capacity for peak demand to ensure service quality.

In Low-Contact Systems, Capacity Should Be Set at the Level