UNIT – 3 CAPACITY PLANNING CONCEPT: Capacity simply means the ability to hold‚ receive‚ share or accommodate. It is a productive capability or a facility. Capacity is a critical consideration for long term strategy. It is generally measured in volume of output per unit of time. Capacity is the limiting capability of a productive unit to produce within a stated time period‚ normally expressed in terms of output per unit of time. So‚ capacity is the maximum productive capability.
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need to plan necessary and sufficient capacity to meet market demands. However‚ capacity planning is a very challenging task for many manufacturers. In Bangladesh now as well as the other industries ceramic industries need to compete to make better place in the market. Understanding and then building the infrastructure that provides the needed flexibility and speed requires an in-depth understanding of how capacity impacts your business. The impact of capacity management is felt throughout the organization
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Capacity Planning The overall objective of strategic capacity planning is to reach an optimal level where production capabilities meet demand. Capacity needs include equipment‚ space‚ and employee skills. If production capabilities are not meeting demand‚ high costs‚ strains on resources‚ and customer loss may result. It is important to note that capacity planning has many long term concerns given the long term commitment of resources. Managers should recognize the broader effects capacity
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Capacity Planning Based on time horizon or duration it is viewed in three (i) Long-range Capacity Planning Time horizon is of more than one or two years. It is carried for productive resources which a long time. Long-range capacity planning requires participation and approval of top management personnel. (ii) Intermediate-range Capacity Planning It has a time horizon for 6 to 18 months. It may be varied by such alternative such as hiring off or laying off labour‚ purchasing or making new tools
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Chapter 12: Capacity Planning Question #1: Why are facilities decisions often made by top management? What is the role in these decisions of operations‚ marketing‚ finance‚ accounting‚ engineering‚ and human resources? “Facilities decisions often made up by the top management and the chief executive‚ and the board of directors because these decisions are strategic in nature‚ they require the input of all functional areas in the firm.” It is longest-term planning decision that contains all the important
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Institute of Management Technology Nagpur Supply Chain Management Term paper ON Capacity Requirement Planning Submitted to: Submitted by: Dr. Anwar Ali Section-B2C
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OPER 1027 Term 1 Assessment Case study 1-Capacity Planning in Zara Zara is one of the famous brands of the Spanish retail group. It sells up-to-the-minute ’fashionability’ at low prices‚ in stores that are clearly focused on one particular market. (Slack‚ Chambers‚ Betts‚ & Johnson‚ 2006) The first store opened almost by accident in 1975 due to a large pyjamas order cancellation. But now‚ the holdings group included Zara and the other branded chains Pull and Bear and Massimo Dutti‚ which have over
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A General Strategic Capacity Planning Model under Demand Uncertainty Woonghee Tim Huh‚1 Robin O. Roundy‚2 Metin Çakanyildirim3 1 Department of Industrial Engineering and Operations Research‚ Columbia University‚ New York‚ New York 10027 2 School of Operations Research and Industrial Engineering‚ Cornell University‚ Ithaca‚ New York 14853 3 School of Management‚ University of Texas at Dallas‚ Richardson‚ Texas 75083 Received 29 October 2003; revised 24 August 2005; accepted 30 September
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Maclean Palmer Questions & Answers 1. Evaluate Palmer and his decision to create a new venture capital fund. Maclean Palmer and 4 partners are about to quit their jobs and move to Boston with their families to begin crafting an offering memorandum for a private equity fund. • Private equity is an asset class consisting of equity securities in operating companies that are not public trade on a stock exchange. • Private equity investments are primarily made by private equity firms‚ venture
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Southwestern University: Capacity Planning Case Prepared by: Jalotjot‚ Reyes‚ Subang Central Issue: How to guarantee that the various support activities generate revenue? Areas of Consideration: * Marketing/Finance/Human Resource * Items Available/Pricing/Variable Cost/Revenue Distribution Item | Price/Unit | Variable Cost | Revenue | Soft Drink | $1.50 | $0.75 | 25% | Coffee | $2.00 | $0.50 | 25% | Hotdogs | $2.00 | $0.80 | 20% | Hamburgers | $2.50 | $1.00 | 20% | Misc
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