The more variation a company has in demand,the easier it is to determine the capacity requirement of a facility.

Question

Quizplus · Accepted Answer

If a company has more variation in demand, it makes it harder to determine the capacity requirement of a facility because capacity utilization will fluctuate drastically based on demand patterns. Companies with stable and predictable demand patterns find it easier to determine their facility capacity requirement.

The More Variation a Company Has in Demand,the Easier It