Management Has Decided to Add Capacity Incrementally in Smaller Chunks

question 107

Multiple Choice

Management has decided to add capacity incrementally in smaller chunks as needed, rather than purchasing one large facility. This decision ____________________.

• A) is very risky
• B) will result in low initial costs
• C) will ultimately result in lower costs per unit if demand increases rapidly
• D) positions the company to be well prepared for high demand in the future
• E) can lead to a large amount of excess capacity

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Definitions:

Diverse Foods

A wide variety of foods from different cultures, ingredients, and culinary traditions.

Snacks

Small portions of food typically consumed between regular meals, often to satisfy temporary hunger or for enjoyment.

Strategy

A plan of action designed to achieve a long-term or overall aim, often used in contexts ranging from business to personal goals.

Body Mass Index

Body Mass Index (BMI) is a numerical value derived from a person's weight and height, used as an indicator of whether they have a healthy body weight for their height.