Which one of the following statements about layout is best?
A) A process layout tends to have less inventory than a product layout.
B) A product layout relies more on general-purpose resources.
C) Material handling is the most important performance criterion for layout decisions.
D) A process layout tends to allow more customization of products and services than a product layout.

Question

Quizplus · Accepted Answer

A process layout typically groups resources based on the type of process or activity, allowing for greater flexibility and customization of products and services. In contrast, a product layout is characterized by a linear flow of work and specialized resources, resulting in higher throughput but less flexibility. Option A is incorrect because inventory levels can depend on a variety of factors, including demand and lead times, and are not necessarily determined by the layout type. Option B is incorrect because a product layout typically relies on specialized resources rather than general-purpose equipment. Option C is incorrect because while material handling is indeed an important consideration in layout design, it is not necessarily the most important criterion for all situations.

Which One of the Following Statements About Layout Is Best