The primary concern with having a large positive capacity cushion is
A) reduced customer satisfaction due to the high level of backorders.
B) underutilization of facility capacity.
C) greater likelihood of stock-outs and lost sales.
D) keeping cost of running out in balance with the cost of excess capacity.

Question

Quizplus · Accepted Answer

A large capacity cushion means low utilization. A, B, and D do not relate to a large cushion strategy.

The Primary Concern with Having a Large Positive Capacity Cushion