Building some over-capacity in the supply chain network and making the capacity flexible allows a firm to alter production flows within the supply chain to
A)produce less in facilities that have a lower cost based on current exchange rates.
B)produce more in facilities that have a lower cost based on current exchange rates.
C)produce more in facilities that have a higher cost based on current exchange rates.
D)produce less in facilities that have the same cost based on current exchange rates.

Question

Quizplus · Accepted Answer

By having over-capacity and flexible capacity in the supply chain network, a firm can shift production to facilities that have a lower cost based on current exchange rates, thereby increasing efficiency and potentially reducing costs. This answer aligns with option B.

Building Some Over-Capacity in the Supply Chain Network and Making