Asked by Dharmesh Kharel on Jul 22, 2024

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A common method(s) used to increase capacity with a lag strategy is/are

A) overtime and subcontractors.
B) subcontractors and new facilities.
C) new facilities and new machinery.
D) new machinery and overtime.
E) turning away customers.

Lag Strategy

A business approach where the decision to increase capacity is delayed until demand has proven to sustain at a higher level.

Subcontractors

Third-party businesses or individuals hired to perform part of the work that was originally contracted by another company.

New Facilities

Refers to the construction or opening of new physical buildings or infrastructure for business or operational use.

  • Investigate the different tactics for capacity management, encompassing lead, lag, and straddle strategies.
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DR
Dariela RondonJul 24, 2024
Final Answer :
A
Explanation :
The lag strategy involves increasing capacity in response to actual increases in demand. Overtime and subcontractors are common methods used to temporarily increase capacity without committing to long-term investments like new facilities or machinery.