Final answer:
Level capacity loading is a strategy that minimizes work-in-process inventory and maximizes workforce and equipment efficiency while maintaining a predictable production schedule. It does not aim to maximize work-in-process inventory or necessarily improve flexibility in meeting customer demand.
Step-by-step explanation:
The question pertains to the benefits of level capacity loading, a production strategy used by companies to maintain a consistent production rate, rather than fluctuating output in response to changing demand. The correct benefits of level capacity loading include:
- Minimizes work-in-process inventory: By keeping production levels steady, companies can avoid the buildup of excess inventory, which ties up capital and can result in additional costs.
- Maximizes efficiency in workforce and equipment utilization, thereby reducing the need for frequent setup changes, which aligns with minimizing time to setup for different products.
- Limits the need for excessive inventory space and helps in maintaining a more predictable production schedule.
Options A and E should be dismissed, as they suggest maximizing work-in-process inventory, which is contrary to one of the aims of level capacity loading. Option C is not a benefit but a drawback since level capacity loading can indeed limit the flexibility to meet customer demand when it changes abruptly.