The Advantage of Maintaining Enough Manufacturing Capacity to Meet Demand

question 35

Multiple Choice

The advantage of maintaining enough manufacturing capacity to meet demand in any period is

• A)very low inventory costs because inventory needs to be carried from period to period.
• B)very low inventory costs because no inventory needs to be carried from period to period.
• C)very high inventory costs because no inventory needs to be carried from period to period.
• D)very high inventory costs because expensive capacity would go unused during most months when demand was lower.

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