All of the following are ways of improving capacity except
A) acquiring equipment and labor
B) outsourcing
C) increases in business productivity
D) reducing quality

Question

Quizplus · Accepted Answer

Reducing quality is not a way of improving capacity; it may result in lower demand and decrease in capacity utilization. A, B, and C are ways of improving capacity. A company can acquire more equipment and labor to increase its production capacity. Outsourcing can help transfer some of the production processes to specialized companies and allow the company to focus on its core competencies. Increases in business productivity, such as reducing production time and waste, can also increase capacity.

All of the Following Are Ways of Improving Capacity Except