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1.Suppose you have a factory that produces widgets for your store. Widgets have seasonal demand, high sometimes, low other times. (For example: beach balls may
1.Suppose you have a factory that produces widgets for your store. Widgets have seasonal demand, high sometimes, low other times. (For example: beach balls may have high demand in summer, low demand in winter). One way to solve this problem is to have the factory have enough capacity to meet peak demand. Another is to have a warehouse to store the goods in the slow season and size the factory for average demand.
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