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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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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 ...

Solution Summary

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

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