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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Capacity Planning & Aggregate Production Planning Capacity Planning • Long term strategic decision • determines overall level of resources • affects product lead times‚ customer responsiveness & operating costs Capacity Planning Three Basic Strategies for Timing Capacity • Capacity Lead Strategy – capacity is expanded in anticipation of demand – aggressive and used to lure away customers from competitors already constrained Capacity Planning Three Basic Strategies for Timing Capacity • Capacity
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chapter 6: Planning capacity Capacity the maximum rate of output of a process or a system. Acquisition of new capacity requires extensive planning‚ and often involves significant expenditure of resources and time. Capacity decisions must be made in light of several long-term issues such as the firm’s economies and diseconomies of scale‚ capacity cushions‚ timing and sizing strategies‚ and trade-offs between customer service and capacity utilization. Planning capacity across the organization
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Capacity Planning and Control: Nestle Course Work in Operations Management May‚ 2005 A business organization is an entity that inputs capital and resources‚ processes them and gets an output – products and services. Any business invests much capital into R’n’D and marketing for studying the customers’ opinion because it is a priority for any business to satisfy its customers. The more satisfied the customers are the better off the business is. Thus both parties are well off – customers get what
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Production‚ Planning and Control Dr. Sindhuja • The most important business module – Production. Why?... Objectives • The ultimate objective of production planning and control‚ is to contribute to the profits of the enterprise. • this is accomplished by keeping the customers satisfied through the meeting of delivery schedules. • Specific objectives of production planning and control are to establish routes and schedules for work that will ensure the optimum utilization of materials‚ workers
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CAPACITY PLANNING Real Options Analysis Practice Questions and Solutions CAPACITY PLANNING Question 1: PROJECT SABLE Use a 30% per year discount rate to evaluate Project Sable‚ which has two phases. You may invest in the first‚ in both or in neither. You may not invest in the second phase without investing in the first. Phase 1 requires an investment of $100. One year later the project delivers on the average $120. At that time‚ after the phase 1 payout has been received‚ you may invest
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PLANNING Meaning Planning is deciding in advance what to do and how to do. It is one of the basic managerial functions. Before doing something‚ the manager must formulate an idea of how to work on a particular task. Thus‚ planning is closely connected with creativity and innovation. But the manager would first have to set objectives‚ only then will a manager know where he has to go. Planning seeks to bridge the gap between where we are and where we want to go. Planning is what managers at all levels
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dependent variable that we are solving for‚a is the Y-intercept‚ b is the slope‚ and X is the independent variable( In the time series analysis‚ X is the units of time)This method is useful for long-term forecasting of major occurences and aggregate planning. The linear regression model is based on the relative increase in consumer sales‚ which is then translated with a separate retailer model into the sell-out sales forecast of Coca-Cola. The restrictions with this method is that past data and future
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the study and absorb the $40‚000 cost. One of the things they said is that special services for women‚ as well as children‚ should be included to make the hospital more successful. "About that time ORMC heard what we had in mind and decided they would do it‚" says Dr. Townes. Renowned golfer Arnold Palmer‚ firmly tied to the Orlando area by the 1980s‚ was looking for a charity to support when he was approached by ORMC. "Arnold was insistent that it be top quality in every respect‚" says Rex McPherson
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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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