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

Question

Quizplus · Accepted Answer

Manufacturing operations can use inventory policies to smooth demand, as they can produce goods in advance and store them, unlike services which must be consumed as they are produced.

Compared with a Service Operation,which of These Statements Is True