The capacity management approach where a firm purchases peak production from another firm so that internal production remains level and can be done cheaply is

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Quizplus · Accepted Answer

The capacity management approach described in the question refers to the use of subcontracting, where a firm purchases peak production from another firm in order to maintain level internal production and reduce costs. The other options listed - time flexibility from workforce, the use of seasonal workforce, and the use of dual facilities-dedicated and flexible - may also be used in capacity management, but are not specifically related to the approach described in the question.

The Capacity Management Approach Where a Firm Purchases Peak Production