In supply chain management, which approach to capacity management would only be effective if the overall demand across all the products is relatively stable?
Understand the Problem
The question is asking about a specific approach to capacity management in supply chain management that relies on stable overall demand across multiple products. This implies looking for a strategy that can only work effectively under certain demand conditions.
Answer
Level capacity strategy
A level capacity strategy would only be effective if the overall demand across all the products is relatively stable.
Answer for screen readers
A level capacity strategy would only be effective if the overall demand across all the products is relatively stable.
More Information
A level capacity strategy means that the production capacity remains constant at all times. This is suitable when demand is stable, minimizing the cost of changing production levels.
Tips
A common mistake is to assume flexibility is needed; however, stable demand requires a stable capacity.
Sources
- Solved QUESTION 14 which approach to capacity management - chegg.com
- Chapter 9 Flashcards by Amy Horton - Brainscape - brainscape.com
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