Which of the following statements is correct with regard to capacity and the product life cycle?
A)Capacity requirements are difficult to predict during the introductory stages of a product's life cycle.
B)Capacity needs to be reduced during the growth stages of a product's life cycle.
C)Capacity needs to be expanded during the decline stages of a product's life cycle.
D)Capacity needs to be maintained during the growth stages of a product's life cycle.

Question

Quizplus · Accepted Answer

During the introductory stages, it is difficult to predict the demand for a new product, so it is challenging to determine the required capacity accurately. As a result, it is imperative to have the flexibility to adjust capacity requirements as demand evolves. Option B and D are incorrect because capacity requirements need to be increased in the growth stages, and it is critical to maintain existing capacity during this period to meet rising demand. Option C is incorrect because capacity typically needs to be reduced during the decline stages to keep costs under control.

Which of the Following Statements Is Correct with Regard to Capacity