Which of the following would be a characteristic of a facility with little excess capacity?

Allows a facility to be very flexible and to respond to wide swings in the demands placed on it

Costs money and therefore can decrease efficiency

Requires proximity to customers and the rest of the network

Will likely be more efficient per unit of product it produces

Question

Business

Leblanc

12 December, 15:21

Which of the following would be a characteristic of a facility with little excess capacity?

Allows a facility to be very flexible and to respond to wide swings in the demands placed on it

Costs money and therefore can decrease efficiency

Requires proximity to customers and the rest of the network

Will likely be more efficient per unit of product it produces

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Answers (1)

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Melanie Dorsey · Answer 1

will likely be more efficient per unit of product it produces.

Explanation:

When a production facility has little excess capacity it will employ the just-in-time method of production. This is based on demand for products by consumers, business produces just what it needs to meet present demand.

The result is am efficient process that does not have excess goods that will take up storage space. Also the cost of storage is reduced so business is more profitable.