Anticipation of Demand and Building Capacity

Management may choose to build up capacity in anticipation of demand or in response to developing demand.

What are some advantages and disadvantages of building capacity under these conditions?

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...f having to much capacity is not having enough demand and having to reduce rates in order to use the capacity created resulting in lower revenue.

Businesses must manage capacity and be able to adjust as demand within the market changes. Management can increase revenue by providing the capacity required to meet ...