Utilization in process-oriented facilities is frequently low because

A) the postponement strategy for improving service productivity is being used.
B) scheduling in process-oriented facilities is not very complex.
C) with high fixed costs, utilization is not very important.
D) excess capacity for peak demands is desirable.
E) low raw material inventories cause machines to be idled.

Process-Oriented Facilities

Facilities designed around the specific processes and activities involved in production, often tailored to handling a variety of product types or flexible manufacturing.

Utilization

The extent to which a resource, such as equipment, space, or labor, is being used effectively and efficiently.

Excess Capacity

The situation in which a company can produce more products or services than currently demanded by the market.