Asked by Michaela Trujillo on Jun 04, 2024
Verified
In this approach to managing capacity,a firm purchases peak production so that internal production remains level and can be done cheaply.
A) Time flexibility from workforce
B) Use of subcontracting
C) Use of dual facilities-specialized and flexible
D) Use of seasonal workforce
Peak Production
The highest level of output a company can achieve within a specific period under normal conditions.
- Identify how subcontracting is utilized to handle maximum production capacities.
Verified Answer
KD
Kaitlyn DemeraskiJun 09, 2024
Final Answer :
B
Explanation :
This approach is known as subcontracting. By purchasing peak production from other companies, the firm can keep its internal production level and avoid the costs of expanding capacity. This approach also allows for greater flexibility in meeting demand fluctuations without having to invest in additional resources.
Learning Objectives
- Identify how subcontracting is utilized to handle maximum production capacities.
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