Which one of the following statements about capacity cushions is BEST?
A)Companies with flexible flow processes tend to have small capacity cushions.
B)Companies with high capital costs tend to have large capacity cushions.
C)Companies that have considerable customization tend to have larger capacity cushions.
D)Constant demand rates require larger-capacity cushions.

Question

Quizplus · Accepted Answer

Companies that offer customization tend to have larger capacity cushions to allow for variations in demand and production. Additionally, customization often involves longer lead times and variability in production, which can also require a larger cushion to avoid stockouts or delays in delivery. The other answer choices do not have a strong correlation with capacity cushions.

Which One of the Following Statements About Capacity Cushions Is