A__________matches capacity additions with demand as closely as possible.
A) capacity lag strategy
B) capacity straddle strategy
C) capacity lead strategy
D) capacity reduction strategy

Question

Quizplus · Accepted Answer

The capacity straddle strategy matches capacity additions with demand as closely as possible. This strategy involves adding capacity in small increments to meet demand without leading to oversupply or underutilization of existing capacity. Capacity lag strategy involves adding capacity after demand outstrips the current capacity, which may lead to missed sales opportunities. Capacity lead strategy involves adding capacity before the demand arises, which may lead to excess capacity and increased costs. Capacity reduction strategy refers to the reduction of capacity due to changes in demand or cost-cutting measures.

A__________matches Capacity Additions with Demand as Closely as Possible