_____ is a capacity-expansion strategy with the goal of maintaining sufficient capacity to minimize the chances of not meeting demand.
A) Capacity lag
B) Capacity straddle
C) Capacity lead
D) Capacity reduction

Question

Quizplus · Accepted Answer

Capacity lead is a strategy that involves adding capacity before it is needed to ensure sufficient capacity is available to meet future demand. This helps minimize the risk of not meeting demand and can also provide a competitive advantage by allowing for faster delivery or production times. Capacity lag involves adding capacity after demand has increased, which may result in backlogs or delays and can negatively impact customer satisfaction. Capacity straddle involves adding capacity in small increments, which may not be sufficient to meet future demand. Capacity reduction involves reducing capacity, which may be necessary in cases where demand has significantly decreased, but it is not a strategy for expanding capacity to meet demand.

_____ Is a Capacity-Expansion Strategy with the Goal of Maintaining