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Which of the following is incorrect? Adding capacity reducesGroup of answer choicesCapacity riskInventory riskProcurement riskSupply chain delays

Question

Which of the following is incorrect?

Adding capacity reduces

Group of answer choices

  • Capacity risk
  • Inventory risk
  • Procurement risk
  • Supply chain delays
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Solution

To determine which statement is incorrect regarding adding capacity and its effects, let’s analyze the options provided:

  1. Capacity Risk: Adding capacity typically reduces capacity risk by ensuring that there is enough production capability to meet demand. Therefore, this statement is likely correct.

  2. Inventory Risk: Increased capacity can also lead to better inventory management as businesses can respond more quickly to demand changes, potentially reducing inventory risk. This is likely to be correct as well.

  3. Procurement Risk: Increasing capacity may decrease procurement risk as a business can better manage supply needs and avoid shortages. This can be considered correct, too.

  4. Supply Chain Delays: Adding capacity can indeed help in reducing supply chain delays since it allows for faster production and fulfillment processes.

Based on this analysis, all options appear to be impacted positively by adding capacity. Thus, the conclusion is that none of the statements seem incorrect in the context of how adding capacity influences risks and delays. If pressed to choose the most unlikely incorrect statement, we could generalize that "supply chain delays" might be perceived as less directly related to capacity.

However, every option aligns positively with increased capacity. Further context could provide a more definitive answer, but based on standard interpretations, there does not appear to be an incorrect assertion here based on typical industry relations.

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