The advantage of building up inventory during the off season to meet demand during peak seasons and keep production stable year round is
A) very low inventory costs because no inventory needs to be carried from period to period.
B) much of the expensive capacity would go unused during most months when demand was lower.
C) in the fact that a firm could get by with a smaller,less expensive factory.
D) in the fact that a firm could get by with a larger,more expensive factory.
Correct Answer:
Verified
Q16: In general,as the fraction of increased demand
Q17: Pricing decisions based only on revenue considerations
Q18: The use of dual facilities to manage
Q19: A firm can vary supply of product
Q20: A firm that uses flexible work hours
Q22: In this approach to managing capacity,a firm
Q23: A firm can vary supply of product
Q24: The disadvantage of maintaining enough manufacturing capacity
Q25: The capacity management approach that uses a
Q26: In this approach to managing capacity,a firm
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents