Discussion
Assertion (A): Capacity of a seasonal plant is fixed by the peak arrival rate of raw material.
Reason (R): The crop arrives within a short window and cannot be held back.
Select the correct answer from the options below.
Answer: C
Correct answer: Both A and R are true, and R is the correct explanation of A
Because the crop arrives in a short window and cannot be held back, the plant must be able to take the peak rate or the surplus is lost. That is the whole reason capacity is set by the peak rather than by the average.
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