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Reserve units are set up for rapid movement to a point of crisis. Hence they are concentrated and should be:

1) Unable to dig very much (heavy negative modifier)
2) Vulnerable to ground bombing and artillery attacks
3) Vulnerable to attack if enemy ground units reach the setup areas

They should also spend movement (I thought they already did) to reach any combat they get involved in.

Of course, this is a view based on the historical facts rather than playability in the game.

ORIGINAL: Dinglir

Reserve units are set up for rapid movement to a point of crisis. Hence they are concentrated and should be:

1) Unable to dig very much (heavy negative modifier)
2) Vulnerable to ground bombing and artillery attacks
3) Vulnerable to attack if enemy ground units reach the setup areas

They should also spend movement (I thought they already did) to reach any combat they get involved in.

This is probably the most reasonable & historically the closest, but then we come back to whether
the "fix" just doesnt cause further problems..I am starting to believe that the structure of the
game is so poor that a fix here will "rebound" later.

I think it would help balance a lot if the defender paid the full mp price to move both ways and the cost of a deliberate attack. Keeping them from digging would also be justified. After that there doesn't need to be any further malus. These two adjustments are definitely common sense and would only touch up a weak area without affecting balance too much. If the defender puts all rear units on reserve then none of them dig, refit, and if they get used they burn up their mp's and fatigue. Sounds like a solid adjustment to me.

This gives three ways to stop enemy - normal troops dig, troops on refit are strong, troops on reserve help to hold the line. I like it, it should made lines easier to penetrate, especially German as they can't afford too many troops in the rear. One more way to allow maneuver warfare instead of trench war.

It turns out the cost in MP is variable and not a simple movement cost (there and back again plus battle). Many factors are involved and some factors can reduce the cost significantly. The cost is printed at the end of the "is committed to the defense" or "is committed to the attack" message. I think I will not touch this at this point, so for now I will go with reduction of construction points for units in reserve and on refit.

edit: turns out unit on refit were already penalized, they had %TOE construction points.

I think that's good. Units in reserve in this game are just that - ready for a pending battle not strung out digging in also units in refit are reorganising and resting and taking leave, repairing stuff and so on so that is already covered. The idea to reduce their dig in capacity seems sensible and realistic.