Which One of the Following Statements About Capacity Cushions Is

question 43

Multiple Choice

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.

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Definitions:

Equipment Costs

These are the expenses associated with purchasing or leasing machinery, tools, or other equipment required for the operation of a business or research activity.

Service Delivery

The process of providing services to customers or citizens, often evaluated by speed, quality, and customer satisfaction.

Idle Production Capacity

The portion of a production facility's total capacity that is not currently being used in the production of goods or services.

Boeing 737

A popular and widely used series of narrow-body aircraft manufactured by Boeing Commercial Airplanes.