Which One of the Following Statements Concerning Capacity Cushions Is

question 17

Multiple Choice

Which one of the following statements concerning capacity cushions is best?

• A) Capacity cushions are used primarily in manufacturing organizations, not in service organizations.
• B) Large- capacity cushions are utilized more often when future demand is level and known.
• C) Small cushions are used in organizations where the products and services produced often change.
• D) Small- capacity cushions are used extensively in capital- intensive firms.

---

Definitions:

Collaborative Planning

A strategy where multiple stakeholders work together in the planning process to improve supply chain efficiency and meet shared goals.

CPFR

Collaborative Planning, Forecasting, and Replenishment, a business practice that combines the intelligence of multiple trading partners in the planning and fulfillment of customer demands.

Demand Management

The process of forecasting, planning, and managing the demand for products and services to optimize resources and ensure alignment with supply capabilities.

Safety Stocks

An inventory management method aimed at preventing stockouts by maintaining a predefined level of extra stock for products.