Which of the following is false regarding capacity expansion?

A) "Average" capacity sometimes leads demand, sometimes lags it.
B) If "lagging" capacity is chosen, excess demand can be met with overtime or subcontracting.
C) Total cost comparisons are a rather direct method of comparing capacity alternatives.
D) Capacity may only be added in large chunks.
E) All of the above are true.

Question

Ayzen Kenpachi · Accepted Answer

Final Answer : D, Explanation :  Capacity may be added in small or large increments depending on the specific needs and resources of the organization. Adding capacity in small increments can be a more flexible and cost-effective approach.

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