Which one of the following statements about capacity expansion is best?
A) The expansionist strategy minimizes risk.
B) The timing and sizing of expansion are related.
C) The expansionist strategy lags behind demand and relies on short- term capacity expansion options.
D) Lost sales are more likely if the expansionist strategy is used.

Question

Quizplus · Accepted Answer

The timing and sizing of expansion are related because the expansion must be large enough to meet the increased demand, but not so large that it results in excess capacity.

Which One of the Following Statements About Capacity Expansion Is