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 scenario presents a firm contemplating adding more machines before demand actually increases, which is a proactive capacity strategy.
Option 1: 'Wait-and-see' — This approach would mean delaying investment until demand is proven or clearer signals arise. It contrasts with the described preemptive action, making this option not aligned with the scenario.
Option 2: 'Expansionist' — This choice directly matches the idea of expanding capacity ahead of demand to prevent future bottlenecks and to capture anticipated growth, which is precisely the described tactic.
Option 3: 'Lean production' — Lean production emphasizes eliminating waste and improving efficiency within existing processes rather than investing in additional capacity before demand rises. It does not primarily focus on adding machines pre-emptively.
Option 4: 'Constraint management' — This concept centers on identifying and addressing bottlenecks to improve throughput, often within the current system, rather than broadly expanding capacity beforehand. While related to throughput, it does not capture the explicit pre-emptive capacity expansion described.

In summary, the key idea in the scenario is proactive capacity expansion to prepare for anticipated demand, which aligns with Expansionist, while the other strategies revolve around timing, efficiency, or bottleneck-focused improvements rather than pre-emptive expansion.

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

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