A large capacity cushion is appropriate when
A) a make-to-stock process is used.
B) a firm is attempting to capture market share in a growing industry.
C) the market for its products or services is shrinking.
D) a firm wants its capacity to match average demand.

Question

A large capacity cushion is appropriate when
A) a make-to-stock process is used. 
B) a firm is attempting to capture market share in a growing industry.
C) the market for its products or services is shrinking.
D) a firm wants its capacity to match average demand.

Quizplus · Accepted Answer

An expanding market is a chief reason for developing a large capacity cushion-capture market share when competitors cannot.

A Large Capacity Cushion Is Appropriate When