Excess capacity

A) allows a facility to be very flexible and to respond to wide swings in the demands placed on it.

B) costs money and therefore can decrease efficiency.

C) requires proximity to customers and the rest of the network.

D) both A and B

E) all of the above

A) allows a facility to be very flexible and to respond to wide swings in the demands placed on it.

Explanation:

Excess capacity means when company have potential to process higher amount of product but still produce lower amount of product though the unit is designed work more and efficiently. you can produce more goods and also can sale it at lower prices, so that means it can fulfil demand flexibility.