Lag and straddle strategies for increasing capacity have what main advantage over a leading strategy?
A)They are cheaper.
B)They are more accurate.
C)They delay capital expenditure.
D)They increase demand.
E)All of the above are advantages.

Question

Quizplus · Accepted Answer

Lag and straddle strategies allow for a delay in capital expenditure, which can be advantageous as it allows the company to gather more information and better assess the market demand before making a larger investment. This can lead to more accurate capacity planning and potentially avoid overinvestment or underinvestment. Additionally, delaying capital expenditure can be a cost-saving measure, making it a cheaper option compared to a leading strategy. However, neither of these strategies directly increases demand.

Lag and Straddle Strategies for Increasing Capacity Have What Main