The Capacity Planning Strategy That Delays Adding Capacity Until Capacity

question 87

Short Answer

The capacity planning strategy that delays adding capacity until capacity is below demand, then adds a capacity increment so that capacity is above demand, is said to ________ demand.

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Definitions:

Required Return

The minimum expected return an investor demands to compensate for the risk of an investment.

Plowback Ratio

The proportion of earnings retained by a company rather than distributed to its shareholders as dividends.

P/E Multiple

Also known as Price-to-Earnings Ratio, it compares a company's share price to its per-share earnings, used to evaluate if a stock is over or undervalued.

EPS

EPS stands for Earnings Per Share, a financial ratio that measures the amount of a company's profit that is allocated to each individual share of its common stock.