Asked by Tonii White on Jun 24, 2024
Verified
If price and demand do vary over time in a global network,
A) flexible production capacity should not be used in the new environment.
B) flexible production capacity will be ineffective in the new environment.
C) flexible production capacity can be reconfigured to maximize profits in the new environment.
D) flexible production capacity should never be used in an uncertain environment.
Flexible Production Capacity
The ability of a manufacturing system to adjust and adapt its output levels in response to changes in demand or production needs.
Global Network
A worldwide interconnected infrastructure, enabling businesses to transact, communicate, and collaborate across borders.
Demand
The amount of a particular product or service that consumers are willing and able to purchase at a given price.
- Comprehend the role and adaptability of flexible production capacity in global network supply chain management under varying price and demand.
Verified Answer
RM
Robert ManyoniJul 01, 2024
Final Answer :
C
Explanation :
In an environment where price and demand are subject to change, flexible production capacity can be reconfigured to optimize profits. By adjusting production levels to correspond with changes in demand and price, companies can maintain profitability in the global market. Therefore, flexible production capacity should be used in this type of environment.
Learning Objectives
- Comprehend the role and adaptability of flexible production capacity in global network supply chain management under varying price and demand.