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 the stage in the product life cycle labeled a, The stage in the pro...

The stage in the product life cycle labeled A in the below figure is called introduction. maturity. growth. diversification. decline.

Explain what steps can the uaw take, The United Auto Workers union enters i...

The United Auto Workers union enters into contract negotiations with the Ford Motor Company in Michigan. What are the three main subject areas the UAW can negotiate with Ford? Prov

Explain facilitating goods packaging cost, One of the package of features t...

One of the package of features that make up a service are: Appearance Facilitating goods Packaging Cost Implied use

I need excel backup to understand a problem, Need Excel backup to understan...

Need Excel backup to understand how to answer this question. Bob White leaned back and wiped his forehead with his hand. He was the president of the home oven division of Winkley &

Explain what makes the ipad a disruptive technology, 1. Evaluate the impact...

1. Evaluate the impact of the iPad using Porter's competitive forces model. 2. What makes the iPad a disruptive technology? Who are likely to be the winners and losers if the iP

Determining operations strategy - traditional approaches, Determining Opera...

Determining Operations Strategy - Traditional and Emerging Approaches Three known and acknowledged procedures are presented here: the Hill, Platts and Gregory, and the Slack

Explain artistic and creative exception to the overtime rule, 1. Grapple In...

1. Grapple Industries has 1,000 full-time and part-time employees who manufacture parts for hand tools. Company policy states that part-time employees are not eligible for overtime

Explain maintain its strong brand images, impressive portfolio includes som...

impressive portfolio includes some of the strongest brand names in the world. Additionally, P&G must study its consumers, use long-term perspectives, employ product innovation and

Determine the effect of facility layout of an organisation, What effect doe...

What effect does your organisation's facility layout have on the following (where appropriate): inter-process movement; health & safety; congestion; resource utilisation; work-in-p

Which coca-cola products are main likely to lose customers, Some industry a...

Some industry analysts think soft-drink companies should develop products that will bring new customers into the market rather than just creating variants on the old. They warn tha

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