Of the four approaches to capacity expansion, the approach that "straddles" demand:
A) uses incremental expansion.
B) uses one-step expansion.
C) sometimes leads demand, and at other times lags.
D) works best when demand is not growing but is stable.
E) Choices A and C are both correct.

Question

Quizplus · Accepted Answer

The "straddle" approach to capacity expansion involves sometimes leading demand by adding capacity in anticipation of increased demand, and at other times lagging behind demand, expanding only when there is clear evidence of sustained demand increase. This approach combines elements of incremental expansion (choice A) and adjusting to demand fluctuations (choice C).

Of the Four Approaches to Capacity Expansion, the Approach That