Capacity Planning and Control: Nestle

An organization will try to plan for vacancies and market fluctuations but derived demand can be difficult to plan for if you have a product or service that has very little discernible

Organizations should look in to ‘why; they are doing business i.e. the purpose, the cause, the belief or the reason of existence; and what consumer needs and wants that they are satisfying. People buy ‘Why’ you do it. Ex: Apple

* Customer demand: Rather than basing on history and forecast sale of its products, the company should pay more attention in analyzing some uncontrollable factors such as inflation, recession, and currency exchange rate which may affect customers’ buying behavior.

From the point of view of the external environment, the effectiveness of organization would gain much more support when the company do the business with their consumers and suppliers, due to the company has provided a wonderful environment for the employees (Businessweek, 2007). Obviously, when the company’s reputations has been known and improved because

3. How does demand variability impact capacity issues at LAA? What can the company do to control variability in demand?

The first tool to compensate demand fluctuation is building inventory as given in the case text. Quantitative trade-off of this tool is basically the opportunity cost of holding inventory which is given as $8 per unit per month. In addition, keeping products for long time intervals in inventory could lead them to hold outdated products which can be though both quantitative and qualitative trade-off. Considering that these aspects should have been included in the inventory holding cost; no additional modification related to these trade-offs are considered.

There are constraints on capacity management and these are normally Time and Capacity. Time may be a constraint where a customer has a particular required delivery date. In this situation, capacity managers often "plan backwards". In other words, they allocate the final stage (operation) of the production tasks to the period where delivery is required; the penultimate task one period earlier and so on. This process helps identify whether there is sufficient time to meet the production demands and whether capacity needs to be increased, albeit temporarily.

As aforementioned, Nestlé is the leading company in nutrition, healthcare and wellness, offering nutritious products for every moment and age. It is the largest food and beverages conglomerate in the world, with a portfolio covering almost every food and beverage category, providing consumers a multitude of products to choose from.

Nestle is a Swiss based multinational company which is head quartered in Vevey, Switzerland. There is a long list of the products of Nestle but the most important ones include baby food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks.

To ensure that SWA is managing capacity, revenue, and customer satisfaction, the long-term focus should be on forecast accuracy and to incorporate capacity planning that provides capacity cushions that are a strategic fit for the overall process and supply chain. SWA must determine what effective capacity can be economically sustained under normal conditions; focus on sizing capacity cushions to ensure that reserve capacity is sufficient to the utilization of production capacity; utilize timing and sizing expansion to know when expansion is appropriate and whether to be attempted in large or small capacity jumps. Finally, capacity strategy should link capacity and other decisions together so that the overall process strategies and operations of SWA are balanced and work cohesively by looking at how capacity cushions being utilized strategically fit with:

Here are some the common challenges which all the organizations face around the world and Nestle Bangladesh Ltd is also facing all of these challenges more or less.

Nestle is a swiss multinational food and beverages company. Its headquarters is located at vevey, Switzerland. In terms of revenue it is largest food company in world. Nestle produces the portified products such as baby food ,bottled water ,breakfast cereals ,coffee ,tea ,dairy products ,ice cream ,frozen food ,pet foods ,and snacks .Nestle provided 167 billion servings of fortified products .Among them 29 brands of Nestle are getting turnover of $US1.1 billions. Nestle is one of main shareholders of L’OREAL company, the worlds largest cosmetic company.

In this essay, two companies will be identified and described on how they utilize a queuing system. Only two of the four most basic waiting line structures will be discussed: single-server and multiple-server waiting lines. Since waiting is an integral part of many service related operations, it is an important area of analysis. Each queue system has its advantages and disadvantages, but with no doubt each company’s goal is to cut down on the waiting time and that customer returns. In particular, we examine their implementation of both processes and try to find solutions to improve the waiting line process.

In today’s world, different types of business have emerged and business operations have become the cornerstone of making a success, however the way in which they are operated is what is important. Most businesses hunt the main objective of making a profit without considering how that might affect other factors of society and that is what in most cases diminishes the longevity of the organisation.

The purpose of this report is to evaluate Nestle Company industry based on the case study and comprehend how the company develop strategic intent for their business organisations following the analysis of external and internal business environments. I will analyse the strategic management process as firm used to achieve strategic competitiveness and earn above-average returns. I will discuss the strategy formulation that includes business-level strategy and corporate-level strategy.