Safety capacity or a capacity cushion is _____.
A) needed for processes with little demand variability
B) the amount of capacity reserved for anticipated events
C) the amount of capacity reserved for unanticipated events
D) not appropriate for service organizations

Question

Quizplus · Accepted Answer

Safety capacity, or a capacity cushion, is the amount of capacity reserved for unanticipated events, such as unexpected increases in demand or equipment breakdowns. It is important for organizations to have a safety capacity in order to ensure they are able to meet customer demand and maintain high levels of service, even during unexpected events. Therefore, option C is the correct answer.

Safety Capacity or a Capacity Cushion Is _____