Explore BrainMass

Why do firms need to maintain strategic capacity reserves?

I am hoping to get a basic understanding, of the many reasons why the need for capacity reserves. I know the answer can be long, to include supply, demand, and the uncertainty of business demands.

© BrainMass Inc. brainmass.com June 22, 2018, 10:23 pm ad1c9bdddf

Solution Preview

There are numerous reasons for maintaining a strategic capacity reserves, some examples are:

1.In the electric market strategic capacity reserves are needed because electricity cannot be readily stored it must be generated upon demand. The Capacity ...