Determine whether the stated disadvantage is created by a capacity-leading strategy or a capacity-lagging strategy: Utilisation of the plants is always relatively low, therefore costs will be
High.
A) Capacity-leading strategy
B) Capacity-lagging strategy

Question

Quizplus · Accepted Answer

A capacity-leading strategy involves building capacity in anticipation of future demand increases. This can lead to periods where the utilization of plants is relatively low because the capacity exceeds current demand, leading to higher costs due to underutilization.

Determine Whether the Stated Disadvantage Is Created by a Capacity-Leading