Approaches to expanding long term capacity, Operation Management

Assignment Help:

Approaches to Expanding long term Capacity

There  are two  major  approaches to  expanding  the long  term capacity  viz.

  1. All at once and
  2. Building  a capacity  incrementally

1. All at once approach: Consists of the  decision  to build  ultimate  facility  at one  time and  then  growing  into it  over time.

The  benefits of this  approach  are:

  • Little danger of having  to turn  down  business  due to  inadequate capacity,
  • Less interruption of production,
  • One large construction projects costs less than  several  smaller projects,
  • Due to  inflation construction costs will be higher in the  future.
  • Most  suitable  for nature  products with  stable  demand.

 

2. Building  capacity  incrementally approach  is one in which  capacity is built incrementally  as the demand grown,

The benefits  of this  approach are:

  • Less dangerous  if forecast needs  do not  materialize.
  • Funds that  could  be employed  for other  kinds  of investments  will not be  tied up in excess  capacity.
  • More  suitable  for new  products.

Related Discussions:- Approaches to expanding long term capacity

Explain what are liquidity ratios, Now let's continue our discussion about ...

Now let's continue our discussion about the financial aspects of owning your own business that are part of, by considering the idea of "ratio analysis". In considering "financial r

Define summarize the organization technological solution, 1. Briefly summar...

1. Briefly summarize the organization technological solution. 2. Would you classify this as an enterprise or workgroup solution (review the Case Study Areas of Focus document in

A main outcome of electronic data interchange, A main outcome of electronic...

A main outcome of electronic data interchange (EDI) is   To save paperwork by using structured electronically transmitted data.

Explain federal trade commission, 1. Please explain, in detail, the strateg...

1. Please explain, in detail, the strategic issues both external and internal that Whole Foods' faces. 2. Please explain, in detail, the strengths, weaknesses, opportunities and th

Explain integration of social networking, Choose any company web site (it c...

Choose any company web site (it can be your own company) and evaluate its effectiveness. Write an essay of between 750-1000 words, double-spaced, focusing on such topics as the web

Explain the planning function of management, Need help with paper for this ...

Need help with paper for this class? Attain faculty approval as you select one of the following organizations: • Global Crossing • Tyco • WorldC

Assignment, #question.Opration system of the garments manufacture of bangla...

#question.Opration system of the garments manufacture of bangladesh.

Define the minimal long-term effect on the environment, Define the minimal ...

Define the minimal long-term effect on the environment. Practices for minimal continuing effect onto the environment: a. Reduction within the use of toxic substances. b.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd