Which of the following are disadvantages of thesmall-capacity strategyin capacity planning?

Thesmall-capacity strategymeans a company deliberately produces below optimal capacity. This providesagility and flexibilityto respond to market changes and allows forcustomer personalisation. However,the disadvantagesinclude:

Higher production costs(lack of economies of scale)

Weaker ability to compete on price(since larger-capacity businesses have lowerproduction costs)

Options C and Dare disadvantages oflarge-capacity strategy, not small-capacity. (See LO 1.3)

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