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 executive team off-site meeting, Deliverable Length: 10-12 slides, ...

Deliverable Length: 10-12 slides, with presenter notes Details: You are an OD consultant for the Working Better Group. The President of a firm, BARTH Inc., requested a meeting w

Explain major sources of commercial-grade frozen pizza, A large hotel-casio...

A large hotel-casion in Las Vegas is currently under construction. There will be an Italian restaurant in the hotel that will serve pizza. Management is trying to decide whether to

Computer aided design., Computer Aided Design is one of the techniques used...

Computer Aided Design is one of the techniques used by Regal Marine in manufacturing of boats. With the aid of exapmles, critically discuss five (5) techniques that are important t

Explain investment triple itself, At what rate of interest, compounded annu...

At what rate of interest, compounded annually, will an investment triple itself in (a) 8 years ? (b) 10 years? (c) 12 years?

Drawbacks and challenges designing this job for efficiency, Consider the jo...

Consider the job of a customer service representative who fields telephone calls from customers of a retailer that sells online and through catalogs. What measures can an employer

Theory of constraints in a company, Theory of Constraints in a Company ...

Theory of Constraints in a Company The XYZ Group is one of the largest landscaping companies in the United States. Sixty per cent of the business is landscape maintenance; the

Product layout., define the following key terms in product layout; product...

define the following key terms in product layout; product interval time, product duration, assembly line balancing

Compute a simple exponential smoothing forecast, The actual demand of the p...

The actual demand of the patients at Omaha Emergency Medical clinic for the first six weeks of the year are as follows: week Actual # of patients 1 65 2 62 3 70 4 48 5 63 6

Explain what is the multifactor productivity for each system, A grocery cha...

A grocery chain is considering the installation of a set of 4 self-checkout lanes. The new self-checkout lane setup will replace 2 old cashier lanes that were staffed by a cashier

Point rating method, How to write point rating method for assignment

How to write point rating method for assignment

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