Answer:
Harlose Suits owns more equipment than required for manufacturing goods during periods of regular demand in order to tackle sudden demand surges. It also has a certain reserve of produced goods to tackle material shortages. In this case, the reserve of equipment and produced goods are examples of the capacity cushion.
Explanation:
The capacity cushion is the amount of reserve capacity that a business keeps to manage sudden increases of demand or momentarily losses of production capacity.
In this case, the reserve of equipment and produced goods are examples of capacity cushion.
Capacity cushion can be defined as the excess capacity that is available as reserve or retain capacity incase of unexpected increases in demand.
Capacity cushion is important as it enables companies or organization to meet their customers demand in a situation where their is sudden increase in a demand of goods and services.
With Capacity cushion business owners, companies or organization can handle unexpected increases in demand or temporary production losses as their is excess reserve capacity to meet their customers needs.
Inconclusion the reserve of equipment and produced goods are examples of capacity cushion.
Learn more here:
https://brainly.com/question/1528009
