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

Question

Quizplus · Accepted Answer

When dealing with random demand and variable processing time, it is important to have some buffer capacity in order to maintain acceptable customer service levels. This means that it may not be possible to operate at very high capacity utilization levels without risking service disruptions or delays.

In Operations and Supply Chain Environments That Must Deal with Random