Question

A _____ is a strategy for expanding capacity that waits until demand has increased to a point where additional capacity is necessary.
a. capacity lead strategy
b. capacity reduction strategy
c. capacity match strategy
d. capacity lag strategy

Answer 1

A capacity lag strategy is a strategy for expanding capacity that waits until demand has increased to a point where additional capacity is necessary. Capacity planning is used to determine how a company should make sure they are fulfilling their level of demand for their products and services. A lag strategy is used to help increase capacity when there is an increase in demand.