In this approach to managing capacity,a firm has flexible production lines whose production rate can easily be varied.

Question

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Designing product flexibility into the production processes allows a firm to quickly change production rates based on demand. This approach allows for more efficient use of resources and can help prevent overproduction or underproduction. Time flexibility from workforce and use of seasonal workforce may not be feasible for all industries or may not provide enough flexibility to manage capacity. Subcontracting can be an option, but it may not be as efficient or cost-effective as having in-house flexibility.

In This Approach to Managing Capacity,a Firm Has Flexible Production