Expected Demand Expected Demand New Capacity New Capacity Demand Demand Time in Years Time in Years Capacity leads demand with an incremental expansion Capacity lags demand with an incremental expansion Approach 1 Approach 2 1. is more suitable when the future demand uncertainty is low. may result in shortages. a. Approach 1, Approach 1 b. Approach 1, Approach 2 C. Approach 2, Approach 1 d. Approach 2, Approach 2 e. None of the above