The service inventory-hedging strategy benefits the firm by directing skill-enhancing activities into idle time slots.

Question

Quizplus · Accepted Answer

The service inventory-hedging strategy involves adding extra capacity or inventory to hedge against demand variability. This can lead to idle time slots that can be used for skill-enhancing activities, such as training or cross-training employees. Therefore, the statement is true.

The Service Inventory-Hedging Strategy Benefits the Firm by Directing Skill-Enhancing