Which one of the following statements is a disadvantage of a product layout?
A) Processing rates tend to be slower.
B) It is more vulnerable to changes in the products and services offered.
C) More space and capital are tied up in inventory.
D) Materials handling tends to be costlier.

Question

Quizplus · Accepted Answer

The disadvantage of a product layout is that it is more vulnerable to changes in products and services offered. This means that if there is a change in the product or service, the layout may need to be reconfigured, which can be costly and time-consuming. Processing rates tend to be faster in a product layout because of the specialization of labor and equipment. More space and capital are tied up in inventory and materials handling may be costlier because of the need to transport materials between different workstations.

Which One of the Following Statements Is a Disadvantage of a Product