The Disadvantage of Maintaining Enough Manufacturing Capacity to Meet Demand

Multiple Choice

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

A) much of the expensive capacity would go unused during most months when demand was lower.
B) the expensive capacity would be used consistently throughout the year.
C) most of the expensive capacity would still be used during most months when demand was lower.
D) very low inventory costs because no inventory needs to be carried from period to period.