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Anticipation of Demand and Building Capacity

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Management may choose to build up capacity in anticipation of demand or in response to developing demand.

What are some advantages and disadvantages of building capacity under these conditions?

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Solution Summary

The advantages and disadvantages of building capacity in anticipation of demand are discussed.

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Management may choose to build up capacity in anticipation of demand or in response to developing demand. This can either have a positive or negative affect on the organization. By increasing capacity, the organization has the ability to increase revenue, meet demand, and gain customers loyalty. Some disadvantages ...

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