Which one of the following statements concerning capacity alternatives is best?
A) Subcontracting can help overcome short- term capacity shortages by offloading work on other producers.
B) Using overtime capacity usually improves worker productivity.
C) Adjusting workforce levels is preferred when the workforce is skilled and the labor pool is small.
D) Creating anticipation inventory increases customization, and is particularly favored in the service industry.

Question

Quizplus · Accepted Answer

Subcontracting is a viable strategy to manage short-term capacity shortages by allowing a company to offload excess work to other producers, thus maintaining production levels without the need for immediate internal capacity expansion.

Which One of the Following Statements Concerning Capacity Alternatives Is