Allocation of Resources to Strategic Alternatives:

There is limit on the resources for each and every company in the time being though the degree of scarcity varies for different firms. But these shortages of resources have most of the immense effect on the production than any other functional unit of the organization. Allocation decisions for cash and capital funds, workers, capacity engineers, machines, materials, etc., though constrained, must be done in order to maximize the achievement of objective.

Facility Plans: Capacity, Location, and Layout

As vast capital investment is involved in availing the production capacity, the decisions for providing the capacity have long-term effects and are subjected to greater risk. The internal arrangement of workers, production processes, and departments, being significant positioning steps affect the providing of desired quality, volume and cost of products.