Many alternative strategies are available for the timing and sizing decision in capacity expansion.Which one of the following statements regarding these strategies is best?
A) The expansionist strategy makes large, frequent jumps.
B) Lost sales are more likely when the expansionist strategy is adopted.
C) The wait-and-see strategy makes large, infrequent jumps.
D) The expansionist strategy involves large, infrequent jumps in capacity.

Question

Quizplus · Accepted Answer

The expansionist strategy involves making large, infrequent jumps in capacity to stay ahead of demand, minimizing the risk of lost sales.

Many Alternative Strategies Are Available for the Timing and Sizing