A factory considers adding more machines before demand increases. This is an example of which strategy?

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BlackTom AI · Accepted Answer

The question presents a scenario where a factory decides to add more machines ahead of rising demand, which is a proactive capacity-increasing approach.
Option 1: Expansionist. This choice aligns with the idea of expanding capacity in anticipation of future demand by increasing equipment or facilities before it is strictly required. It reflects a strategic, forward-looking posture intended to reduce potential future bottlenecks.
Option 2: Constraint management. This option centers on identifying and addressing the bottlenecks in a process to improve throughput, usually after constraints are identified, not necessarily by expanding capacity in advance. It emphasizes constraint-focused optimization rather than preemptive expansion.
Option 3: Wait-and-see. This strategy involves delaying investment or action until demand signals are clearer or reach a threshold. It contrasts with adding machines now, since it postpones capacity changes, potentially risking short-term shortages.
Option 4: Lean production. Lean aims to minimize waste and improve flow, often through process improvement, standardization, and just-in-time techniques rather than outright capacity expansion. While lean can influence capacity decisions, it does not primarily describe pre-emptive machine addition.
In sum, the described proactive capacity increase before demand rises best fits the Expansionist approach, as it explicitly involves expanding resources ahead of need to ensure future demand can be met.

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A factory considers adding more machines before demand increases. This is an example of which strategy?

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