Compared with a service operation, a manufacturing operation's capacity is which of the following?
A) Manufacturing capacity is more dependent on time and location.
B) Manufacturing capacity is subject to more volatile demand fluctuations.
C) Utilization rates for manufacturing capacity more directly impacts quality.
D) Demand can be smoothed by inventory policies.
E) Manufacturing capacity is more capable of reacting to demand fluctuations.

Question

Quizplus · Accepted Answer

Manufacturing operations can use inventory policies to smooth out demand fluctuations by producing goods in advance and storing them until they are needed, unlike many service operations that cannot store their services for later use.

Compared with a Service Operation, a Manufacturing Operation's Capacity Is