Which one of the following statements concerning capacity cushions is best?
A)Large capacity cushions are used more often when future demand is level and known.
B)Small capacity cushions are used extensively in capital intensive firms.
C)Capacity cushions are used primarily in manufacturing organizations,not in service organizations.
D)Small cushions are used in organizations where the products and services produced often change.

Question

Quizplus · Accepted Answer

Small capacity cushions are used extensively in capital-intensive firms to minimize costs and maximize efficiency, as these firms often have high fixed costs and need to operate near full capacity to be profitable.

Which One of the Following Statements Concerning Capacity Cushions Is