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Briefly discuss a negative outcome of using a level production plan in a nontangible (service) organization.

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There will be insufficient emp...

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In a level production plan, equipment capacity is set equal to


A) number of trained and qualified operators
B) average demand
C) mean demand
D) maximum number of equipment minus 10% contingency reserves
E) peak demand

F) A) and E)
G) B) and D)

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A demand-based option in which the operations department uses inventories and back orders to react to demand fluctuations is called


A) hyperactive
B) inactive
C) proactive
D) reactive
E) retroactive

F) A) and B)
G) A) and D)

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