We’re discussing maintaining enough manufacturing capacity to meet demand in any period. Will you…

Question 120 / 15 pts
To:
You
Cc:
Onion Team
From:
Marcel
Subject:
Onion Cola
We’re discussing maintaining enough manufacturing capacity to meet demand in any period. Will you back me on this? What are some of the advantages?
Options (Advantages)
It’ll give us very low inventory costs because inventory needs to be carried from period to period.
It’ll give us very high inventory costs because no inventory needs to be carried from period to period.
It’ll give us very low inventory costs because no inventory needs to be carried from period to period.
It’ll give us very high inventory costs because expensive capacity would go unused during most months when demand was lower.
It will give us very low inventory.
We’re discussing maintaining enough manufacturing capacity to meet demand in any period. I don’t like this idea. Will you back me on this? What are some of the disadvantages?
Options (Disadvantages)
Much of the expensive capacity would go unused during most months when demand was lower.
The expensive capacity would be used consistently throughout the year.
Most of the expensive capacity would go unused when demand was lower.
Most of the expensive capacity would still be used during most months when demand was lower.
Very low inventory costs because no inventory needs to be carried from period to period.