Final answer:
The manufacturer should consider Match or Lag capacity planning strategies due to the uncertainty of the new product's popularity. The Lag strategy is more conservative, minimizing risk by increasing capacity only after demand is confirmed. Match strategy aligns capacity with demand forecasts but requires more information to assess its cost-effectiveness.
Step-by-step explanation:
Given that the manufacturer is uncertain about the popularity of the new cell phone case and is facing the cost of expensive molds, the manufacturer should consider a capacity planning strategy that allows for flexibility and minimization of upfront investment. Among the strategies listed, Match and Lag are more conservative approaches. Lag strategy entails increasing capacity only after demand has been firmly established, which avoids the risk associated with investing in equipment that may not be fully utilized if the product is not as popular as anticipated. Meanwhile, choosing Match would mean closely aligning capacity with demand forecasts, adjusting as needed, which could be risky given the manufacturer's lack of certainty about the product's success.
On the other hand, Lead strategy would involve adding capacity in anticipation of future demand increases, which could be wasteful if the demand doesn't materialize. Adjustment strategy could imply small adjustments to capacity based on current market conditions and short-term forecasts, potentially through flexible work arrangements or contingent equipment. However, the question doesn't provide enough information to confidently suggest that Adjustment strategy is more suitable than Match strategy.
In conclusion, without knowing the precise costs or demand, it is challenging to determine which strategy would be the most cost-effective and whether the manufacturer should opt for a strategy that focuses on adjusting capacity closely in line with changing demand or waiting until more information about the demand becomes evident.