Allocating too little capacity results in
A)good responsiveness if demand is not satisfied or low cost if demand is filled from a distant facility.
B)good responsiveness if demand is not satisfied or high cost if demand is filled from a distant facility.
C)poor responsiveness if demand is not satisfied or low cost if demand is filled from a distant facility.
D)poor responsiveness if demand is not satisfied or high cost if demand is filled from a distant facility.

Question

Quizplus · Accepted Answer

Allocating too little capacity results in poor responsiveness if demand is not satisfied. Furthermore, if demand is filled from a distant facility, it will result in higher transportation costs, adding to the overall cost of the operation. Therefore, the answer is D - poor responsiveness if demand is not satisfied or high cost if demand is filled from a distant facility.

Allocating Too Little Capacity Results in