The Advantage of Maintaining Enough Manufacturing Capacity to Meet Demand

Multiple Choice

The advantage of maintaining enough manufacturing capacity to meet demand in any period is

A) very low inventory costs because inventory needs to be carried from period to period.
B) very low inventory costs because no inventory needs to be carried from period to period.
C) very high inventory costs because no inventory needs to be carried from period to period.
D) very high inventory costs because expensive capacity would go unused during most months when demand was lower.