Compared with a service operation, a manufacturing operation's capacity is which of the following?
A)More dependent on time and location
B)Subject to more volatile demand fluctuations
C)Utilization more directly impacts quality
D)Demand can be smoothed by inventory policies
E)More capable of reacting to demand fluctuations

Question

Quizplus · Accepted Answer

Manufacturing operations can smooth demand fluctuations by keeping inventory. In contrast, service operations cannot keep inventory to manage demand fluctuations. Options A, B, C, and E are not relevant in comparing the capacity of manufacturing and service operations.

Compared with a Service Operation, a Manufacturing Operation's Capacity Is