Compared with a Service Operation, a Manufacturing Operation's Capacity Is

question 19

Multiple Choice

Compared with a service operation, a manufacturing operation's capacity is which of the following?

• A)More dependent on time and location
• B)Subject to more volatile demand fluctuations
• C)Utilization more directly impacts quality
• D)Demand can be smoothed by inventory policies
• E)More capable of reacting to demand fluctuations

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Definitions:

Plaster

A mixture of lime, sand, water, and sometimes other materials, applied to walls and ceilings to create a smooth or decorative surface.

Labor

The effort by humans to produce goods or provide services in exchange for wages or salary.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to market balance.

Interest Rate

The percentage of an amount of money charged for its use over a specified period of time, often expressed as an annual percentage.