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Exam Question

For short term periods of up to one year, fundamental capacity is fixed. However, short term
adjustments of capacity are possible by:

  • 1. building inventories during slack periods to meet later demand
  • 2. subcontracting during slack periods
  • 3. building inventories during peak periods to meet demand in slack periods
  • 4. wishing that some customers may cancel the order

View Answer

Answer 1. building inventories during slack periods to meet later demand

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