At any given time, the lack of inventory capability in service firms can result in all of the following scenarios EXCEPT:
A) Demand that exceeds maximum capacity
B) Demand that exceeds optimum capacity
C) Supply and demand balanced at the level of optimum capacity
D) Demand that is below optimum
E) Demand that is below minimum capacity

Question

Quizplus · Accepted Answer

The lack of inventory capability in service firms means that they cannot stock up on inventory to accommodate fluctuations in demand. However, this does not necessarily mean that demand will always be below minimum capacity. It is possible that demand is balanced at optimum capacity or even exceeds it, but it cannot be accommodated due to the lack of inventory. Therefore, the only scenario that is not a possibility is demand that is below minimum capacity.

At Any Given Time, the Lack of Inventory Capability in Service