The ______________________ is the percent of demand held in reserve for unexpected occurrences.
A)best operating level
B)capacity cushion
C)diseconomies of scale
D)economies of scale

Question

Quizplus · Accepted Answer

The capacity cushion is the percentage of capacity held in reserve for unexpected occurrences such as machine breakdowns, order cancellations, and unexpected increases in demand. This ensures that the operation can still operate smoothly without any delays or disruptions.

The ______________________ Is the Percent of Demand Held in Reserve