Which one of the following factors usually motivates a SMALLER capacity cushion?
A) unevenly distributed demands
B) high penalty costs for overtime usage
C) requests for quick customer services
D) high capital intensity

Question

Quizplus · Accepted Answer

A smaller capacity cushion is often motivated by high capital intensity because the high cost of capital investments encourages firms to operate closer to full capacity to maximize return on investment.

Which One of the Following Factors Usually Motivates a SMALLER