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    Why do firms need to maintain strategic capacity reserves?

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    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.

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    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 ...