1. Demand is when customers buy a product or a service; demandcauses a pull flow through the entire value chain.

True

False

2. One of the major benefits of facility layout studies is to topromote employee satisfaction and maximize material handling.

True

False

3. Facility Layout Studies are required only when a new facilityis being built.

True

False

4. Capacity represents the limit a value chain can produceproducts and services to satisfy customer demand.

True

False