Which One of the Following Statements About Capacity Expansion Is

question 7

Multiple Choice

Which one of the following statements about capacity expansion is best?

• A) The expansionist strategy minimizes risk.
• B) The timing and sizing of expansion are related.
• C) The expansionist strategy lags behind demand and relies on short- term capacity expansion options.
• D) Lost sales are more likely if the expansionist strategy is used.

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Definitions:

Online Retailing

The process of selling goods and services through the internet to consumers.

Amazon

An American multinational technology company primarily known for its e-commerce platform, along with cloud computing, digital streaming, and artificial intelligence.

Disintermediation

The removal of intermediaries in a supply chain, allowing for direct transactions between producers and consumers.

Online Services

Web-based applications and resources that provide users with various functionalities over the Internet.