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What characterizes the demand time fence and frozen zone?

  1. All capacity and materials are free to change

  2. All capacity and materials are committed to specific orders

  3. It allows for unlimited scheduling flexibility

  4. It only affects labor resources

The correct answer is: All capacity and materials are committed to specific orders

The correct choice highlights that within the demand time fence and frozen zone, all capacity and materials are committed to specific orders. This is a critical aspect of production planning and inventory management as it emphasizes the need for stability and predictability in the production schedule. During this time frame, any changes to capacity or materials can disrupt the fulfillment of orders, so commitments are made to ensure that resources are aligned with specific demand. This commitment ensures that production plans can be executed efficiently, maintaining customer satisfaction through timely order fulfillment. It recognizes the operational reality that once orders are confirmed, modifications can lead to delays or complications that can impact service levels. The other options describe situations that do not align with the purpose of the demand time fence and frozen zone, where flexibility is limited in favor of maintaining order accuracy and control of operations.