Henderson Air practices the principles of lean manufacturing, including setting up its production lines so they can easily and efficiently be switched to produce various product lines. Which strategy is this firm using to balance supply and demand?

A) Price
B) Lead time
C) Inventory
D) Production flexibility

Henderson Air is using production flexibility to balance supply and demand. By setting up its production lines to be easily and efficiently switched to produce various product lines, the company can adjust to changes in demand without creating excess inventory or experiencing shortages. This allows them to better balance their supply with the demand for their products.