asked 224k views
0 votes
Which of the following is a capacity (supply) modifying option?

a) Adding advertising/promotion
b) Changing inventory levels
c) Changing price
d) Changing product mix to complementary product
e) Extending lead ×

asked
User Rajakvk
by
7.9k points

1 Answer

7 votes

Final answer:

Changing inventory levels is the capacity (supply) modifying option among the given choices, as it directly affects the firm's ability to supply products.

Step-by-step explanation:

The question "Which of the following is a capacity (supply) modifying option?" pertains to actions a firm can take to adjust its capability to meet demand. The correct answer is changing inventory levels. Changing inventory levels directly affects a company's capacity to supply its products. Higher inventory levels mean more goods are available for sale, which increases the firm's ability to meet customer demand. In contrast, methods like changing price or adding advertising or promotion are demand-modifying options as they aim to affect consumer interest and willingness to buy the product rather than the firm's ability to supply it. Changing the product mix to a complementary product could impact both supply and demand but isn't directly a capacity modification. Extending lead times may affect the supply chain but isn't necessarily a way to modify capacity.

answered
User Ionat
by
7.8k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.