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COVID-19 has severely impacted the manufacturing industry across the globe over the last 2.5 years. It created uncertainty about the future demand. In the presence

COVID-19 has severely impacted the manufacturing industry across the globe over the last 2.5 years. It created uncertainty about the future demand. In the presence of demand uncertainty, manufacturers are advised by consultants to increase the proportion of variable costs in their cost structure. On the other hand, academic research suggests that manufacturers should increase the proportion of fixed costs in their cost structure when facing demand uncertainty. What do you think?

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