Which of the following is incorrect? Adding capacity reducesGroup of answer choicesProcurement riskInventory riskCapacity riskSupply chain delays

The statement "Adding capacity reduces procurement risk" is incorrect.

Here's why:

1. Procurement Risk: This refers to the potential failure to meet procurement objectives. Adding capacity does not necessarily reduce procurement risk. In fact, it could increase it if the additional capacity requires more suppliers or more complex supply chains.

2. Inventory Risk: This refers to the risk of holding too much or too little inventory. Adding capacity can reduce inventory risk because it allows for more flexibility in production schedules, which can help to better match inventory levels with demand.

3. Capacity Risk: This refers to the risk of not having enough capacity to meet demand. Adding capacity directly reduces this risk because it increases the ability to meet demand.

4. Supply Chain Delays: These are delays in the delivery of goods or materials from suppliers. Adding capacity can reduce supply chain delays by providing more flexibility in production schedules, which can help to mitigate the impact of delays.

So, the incorrect statement is "Adding capacity reduces procurement risk".