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Notes:
When the service firm enters its rapid growth stage, its sales volume typically increases exponentially. Unfortunately, so does the operational complexity of running the firm. This is what Sasser, Olsen, and Wycoff refer to as the "Bermuda triangle" of operational complexity, where the difficulty in running the business outstrips the manager's ability to handle it. (See Exhibit 8.9.) Other new capacity planning challenges at this stage include (1) the need to incorporate fresh ideas into the existing facilities and (2) the need to upgrade older facilities that are nearing the end of their useful life or that require remodeling or expansion.