Question: When is extra capacity more preferable than safety inventory? High production cost, or very high product value Unavailability of alternative production facilities When demand variability

When is extra capacity more preferable than safety inventory?

  1. High production cost, or very high product value
  2. Unavailability of alternative production facilities
  3. When demand variability is very low
  4. Only (a) and (b)
  5. none of the above

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