Question

An actual demand for online MBA degrees is increasing. Due to this trend a large public university has reduced its tuition cost below the industry average cost and has made the competition time for its online program shorter. The university estimates a 25% increase in students. Which capacity planning strategy has been applied in this scenario?

A. Matching capacity strategy
B. Average capacity strategy
C. Capacity lag strategy
D. Capacity lead strategy

Answer 1

The capacity planning strategy applied in this scenario is Capacity lead strategy. By reducing tuition costs below the industry average and shortening the competition time for its online program, the large public university is proactively expanding its capacity to accommodate the anticipated 25% increase in students.

Step-by-step explanation:

The capacity planning strategy applied in this scenario is Capacity lead strategy. By reducing tuition costs below the industry average and shortening the competition time for its online program, the large public university is proactively expanding its capacity to accommodate the anticipated 25% increase in students. This strategy allows the university to stay ahead of the demand and attract more students.