Question

Which of the following is correct?

Answer 1

Answer:

The correct answer is b) "The greater the degree of product variation, the greater is the excess capacity problem."

Explanation:

Excess capacity means that the demand for a stock is less than the quantity that the company probably could provide to the market.

• The greater the degree of product variation, the greater is the excess capacity problem.

• A lower scale of output than it has been designed for creates an excess of capacity.