Amatches capacity additions with demand as closely as possible. a. capacity lead strategy b. capacity straddle strategy c. capacity reduction strategy d. capacity lag strategy

The correct answer is letter "B": capacity straddle strategy.

Explanation:

In the corporate world, capacity expansion refers to the ability companies have to increase their number of facilities with similar characteristics as the headquarters over a determined period. There are four (4) strategies that can help businesses to expand base on capacity: one large capacity increase; capacity straddle strategy; capacity lead strategy; and capacity lag strategy.

The capacity straddle strategy follows market demands and tries to fulfill it the closest possible. If capacity is larger than demand there is excess but if it is lower than demand there is a shortage.

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