Page 121 - E1 Integrated Workbook STUDENT 2018
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Tools and techniques of operations management






                           Capacity planning





                               Capacity planning aims to balance customer demand with
                               production.


                                             Three possible approaches






                                               Chase demand plan                Demand management
                Level capacity plan                                             planning
                 –   maintains                 –     matches
                     production                      production with            –      attempts to
                     capacity at a                   demand.                         influence demand
                     constant rate                   Requires a                      to smooth
                                                     flexible                        variations above
                                                     approach to                     or below capacity
                                                     production



                  Illustrations and further practice


                  Now try TYU 1 from Chapter 9.


                  Read illustration 1 from Chapter 9.






















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