A shortage of capacity (or inventory)occurs when
A)there are excessive cancellations.
B)there are few cancellations.
C)an expensive backup needs to be arranged.
D)B and C only

Question

Quizplus · Accepted Answer

A shortage of capacity occurs when there are few cancellations, which means that more people have booked for the available capacity/inventory than the capacity available. The options A and C are not necessarily indicative of a shortage of capacity. Excessive cancellations may indicate a surplus of capacity/inventory or other operational issues, and arranging an expensive backup is not always a solution for a shortage.

A Shortage of Capacity (Or Inventory)occurs When