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) All of these are advantages.

Question

Quizplus · Accepted Answer

Lag and straddle strategies delay capital expenditure, allowing the company to invest in additional capacity only when it is required. This provides a financial advantage as it reduces the risk of investing in additional capacity before it is needed. This strategy is also more accurate because it is based on actual demand rather than predictions, which can be inaccurate or unreliable. Lastly, it is a cheaper strategy because it avoids unnecessary investment in capacity that may not be utilized. Therefore, option C is the best choice.

Lag and Straddle Strategies for Increasing Capacity Have What Main