A rail service company has a special "2 for 1 seat sale" and requires an additional 100 railcars to meet the forecasted demand in the next 10 months. After the 10 months, demand is anticipated to fall to previous levels. Which option is the company most likely choose?

Question

Quizplus · Accepted Answer

Leasing the product is the most viable option for the rail service company because it allows them to meet the temporary increase in demand without the long-term financial commitment associated with purchasing or manufacturing additional railcars. Once the demand falls back to normal levels, the company can return the leased railcars, avoiding the costs and logistical challenges of owning surplus equipment.

A Rail Service Company Has a Special "2 for 1