Which of the following is not an approach a company can use to create a buffer for forecast error using safety capacity?
A) Overtime
B) Carry extra workforce permanently
C) Build and carry extra inventories
D) Subcontracting
E) Purchase capacity or product from an open or spot market

Question

Quizplus · Accepted Answer

Building and carrying extra inventories is a method to buffer against forecast errors using safety stock, not safety capacity.

Which of the Following Is Not an Approach a Company