Utilization in process-oriented facilities is frequently low because
A) the postponement strategy for improving service productivity is being used
B) scheduling in process-oriented facilities is not very complex
C) with high fixed costs, utilization is not very important
D) excess capacity for peak demands is desirable
E) low raw material inventories cause machines to be idled

Question

Quizplus · Accepted Answer

In process-oriented facilities, maintaining excess capacity is crucial for handling peak demands efficiently. This approach ensures that the facility can manage sudden increases in demand without compromising on service quality or delivery times, even though it might lead to lower overall utilization rates under normal conditions.

Utilization in Process-Oriented Facilities Is Frequently Low Because