Capacity requirements are difficult to predict during ______.
A)the introductory stages of a product's life cycle
B)the growth stages of a product's life cycle
C)the maturity stages of a product's life cycle
D)the decline stages of a product's life cycle

Question

Quizplus · Accepted Answer

During the introductory stages of a product's life cycle, it is difficult to predict demand and thus capacity requirements. This is because there is little historical data and uncertainty about consumer acceptance and behavior. As a result, overestimating or underestimating capacity can have significant implications for a firm's profitability.

Capacity Requirements Are Difficult to Predict During ______