A capacity straddle strategy is related to
A)One large capacity increase
B)Small capacity increases that match average demand
C)Small capacity increases that lead demand
D)Small capacity increases that lag demand

Question

Quizplus · Accepted Answer

A capacity straddle strategy involves making small capacity increases that match the average demand, allowing for flexibility in meeting demand without overbuilding capacity. This strategy helps to balance the costs of excess capacity and lost business due to insufficient capacity. Therefore, small capacity increases that match average demand is the best choice for a capacity straddle strategy.

A Capacity Straddle Strategy Is Related to