When faced with fluctuating levels of demand, a service firm can do which of the following?
A)Stockpile inventory
B)Manage the level of demand
C)Adjust the level of capacity
D)Hire only on temporary contracts
E)b and c

Question

Quizplus · Accepted Answer

When faced with fluctuating levels of demand, a service firm can manage the level of demand by implementing strategies such as discounts, promotions, or varying prices to encourage more business during slow periods. They can also adjust the level of capacity by adding or reducing resources, staff or changing operating hours. So, the best choice is E, as it includes both options. Stockpiling inventory is not relevant in a service firm as they don't sell physical products. Hiring only on temporary contracts might not provide a reliable workforce, as they might not be available during times of high demand.

When Faced with Fluctuating Levels of Demand, a Service Firm