Which of the following is an example of a modern capacity strategy?
A) construct large plants that perform all the value adding activities
B) produce more than the actual demand to minimize customer dissatisfaction
C) build large specialized plants to concentrate all the tasks at one place
D) construct smaller and more specialized plants that focus on a few tasks
E) produce less than the actual demand to reduce the costs of operation

Question

Quizplus · Accepted Answer

Constructing smaller and more specialized plants that focus on a few tasks is an example of a modern capacity strategy. This allows for greater flexibility and quicker response times to changes in demand, as well as the ability to focus on specific products or services. This is more effective than constructing large plants that perform all the value adding activities or building large specialized plants to concentrate all the tasks at one place, which are strategies that are more suited to a traditional production environment. Producing more or less than the actual demand is also not a sustainable strategy in the long term.

Which of the Following Is an Example of a Modern