Concept explainers
Interpretation: The effect of decisions related to capacity expansion on the operating decision.
Concept Introduction: Capacity decision is not a decision to be taken in isolation. It is the installed capacity which promises to deliver the services to the customers. The utilization of this capacity by appropriate and all-round management of the organization results in operational
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Operations Management: Processes And Supply Chains (12th Edition) (what's New In Operations Management)
- Why is capacity planning for services more challenging than it is for goods production?arrow_forwardWhat kind of major changes could take place in Arnold PalmerHospital’s demand forecast that would leave the hospital withan underutilized facility (namely, what are the risks connectedwith this capacity decision)?arrow_forwardCapacity planning requires a demand forecast for an extended period of time into thefuture. What concerns would you have regarding an extended forecast as a capacityplanner?arrow_forward
- Describe how can a system based approach to capacity planning help ?arrow_forwardWhich capacity strategy would be appropriate for Fitness Plus? Justifyyour answerarrow_forwardanalyse the role of operations management capacity planning and control for Ford motors and explain the techniques used in capacity control.arrow_forward
- Identify four potential unethical actions or inactions related to capacity planning?arrow_forwardHow does capacity planning contribute to efficient system management? Describe the steps involved in capacity planning for an enterprise-level system.arrow_forwardDescribe the different capacity-based options used inaggregate planning and their implications for a companyarrow_forward
- analyse the role of operations management capacity planning and control in a clothing business and illustrate the steps in capacity planningarrow_forwardIdle production capacity may be related to inven-tory or capacity management. How would thepricing component of the marketing mix reduceidle production capacity for (a) a car wash, (b) astage theater group, and (c) a university?arrow_forwardHow does capacity planning contribute to effective system management, and what factors should be considered during this process?arrow_forward
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