The assumption of stability of demand is important for justifying which of the following layout types?
A) fixed-position layout
B) product-oriented layout
C) process-oriented layout
D) all of the above
E) none of the above

Question

Quizplus · Accepted Answer

A product-oriented layout is designed to accommodate a stable demand for a particular product. This type of layout works best when there is a predictable demand for the product being produced. If demand is unstable or irregular, this type of layout may result in underutilization of resources or excessive inventory. Therefore, the assumption of stability of demand is important for justifying a product-oriented layout. Fixed-position layout is used when the product is too large or cannot be moved easily, and process-oriented layout is used for a variety of products with a high degree of customization.

The Assumption of Stability of Demand Is Important for Justifying