In operations and supply chain environments that must deal with random demand,it is virtually impossible to achieve very high capacity utilization levels and still provide acceptable customer service.

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Random demand means that it is difficult to predict when and how much of a product or service will be needed, leading to variability in production and inventory levels. In order to ensure acceptable customer service levels, companies must maintain higher levels of inventory and production capacity, which may not always be fully utilized. Therefore, it is unlikely that very high capacity utilization levels can be achieved in such environments while also providing acceptable customer service.

In Operations and Supply Chain Environments That Must Deal with Random