Inventory and Capacity - Choose the best option that describes both accurately
a. Inventory allows for economies of scale to kick in.Inventory influences longer term capacity
b. Capacity is the maximum output rate. Inventory is required to cover only customer driven variations and uncertainties in the production process and supply chain
c. Capacity is the minimum output rate. Inventory is required to cover all kinds of variations and uncertainties in the production process and supply chain
d. Inventory allows for economies of scale to kick in.Inventory influences short term capacity