An expansionist capacity strategy does all of the following EXCEPT:
A)stay ahead of demand.
B)minimize the chance of lost sales due to insufficient capacity.
C)result in economies of scale and a fast rate of learning,yielding reduced manufacturing costs.
D)involve small,frequent jumps in capacity.

Question

Quizplus · Accepted Answer

An expansionist capacity strategy typically involves large, infrequent jumps in capacity to meet anticipated future demand. Small, frequent jumps in capacity are associated with a incremental capacity strategy. Therefore, option D is the exception as it contradicts the characteristics of an expansionist capacity strategy.

An Expansionist Capacity Strategy Does All of the Following EXCEPT