A manager wishes to invest in specialized equipment to accommodate consistently high demand of a commodity item. What type of layout is the manager designing?

• A. Process-oriented layout
• B. Product-oriented layout
• C. Fixed-position layout
• D. Job shop

Answer: (B)

The manager is designing a product-oriented layout, which is optimal for situations where high demand necessitates a streamlined and efficient production process. In this type of layout, equipment and workstations are arranged in a manner that aligns with the sequence of operations required to produce a specific product. This configuration minimizes transportation and waiting times, thereby increasing efficiency and reducing costs.

A product-oriented layout is particularly advantageous for commodities that are produced in high volumes and have relatively low variability in their production processes. This layout supports a continuous flow of tasks that are standardized, making it ideal for mass production environments.

In contrast, a process-oriented layout would typically be used for low-volume, high-variety processes, while a fixed-position layout is structured around a single location where a product is constructed, and a job shop layout allows for customization and flexibility in production. These alternatives are less suitable for handling consistently high demand in a set and predictable manner, thereby reinforcing why a product-oriented layout is the most appropriate choice in this scenario.