Which of the following is false regarding capacity expansion?
A) "Average" capacity sometimes leads demand, sometimes lags it.
B) If "lagging" capacity is chosen, excess demand can be met with overtime or subcontracting.
C) Total cost comparisons are a rather direct method of comparing capacity alternatives.
D) Capacity may only be added in large chunks.
E) All of the above are true.

Question

Quizplus · Accepted Answer

Capacity may be added in small or large increments. Companies can choose to add capacity gradually as demand increases or add capacity all at once if there is a sudden surge in demand.

Which of the Following Is False Regarding Capacity Expansion