Lag and straddle strategies for increasing capacity have what main advantage over a leading strategy?
A) They are cheaper.
B) They are more accurate.
C) They delay capital expenditure.
D) They increase demand.
E) They increase the need for capital expenditure.

Question

Quizplus · Accepted Answer

Lag and straddle strategies involve delaying capital expenditure until demand has increased, whereas a leading strategy involves investing in capacity before demand has increased. Delaying capital expenditure can save money and reduce the risk of overinvestment if demand does not materialize as expected.

Lag and Straddle Strategies for Increasing Capacity Have What Main