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Lecture 12 - Capacity Management and Planning (continued). The contents of this chapter include all of the following: Managing demand, tactics for managing demand, approaches to capacity expansion, breakeven analysis, decision tree and capacity expansion, net present value, capacity planning issues. | Lecture 12 Capacity Management and Planning (continued) Books Introduction to Materials Management, Sixth Edition, J. R. Tony Arnold, P.E., CFPIM, CIRM, Fleming College, Emeritus, Stephen N. Chapman, Ph.D., CFPIM, North Carolina State University, Lloyd M. Clive, P.E., CFPIM, Fleming College Operations Management for Competitive Advantage, 11th Edition, by Chase, Jacobs, and Aquilano, 2005, N.Y.: McGraw-Hill/Irwin. Operations Management, 11/E, Jay Heizer, Texas Lutheran University, Barry Render, Graduate School of Business, Rollins College, Prentice Hall Objectives Managing Demand Tactics for managing demand Approaches to capacity expansion Breakeven analysis Decision tree and capacity expansion Net present value Capacity planning issues Managing Demand Demand exceeds capacity Curtail demand by raising prices, scheduling longer lead time Long term solution is to increase capacity Capacity exceeds demand Stimulate market Product changes Adjusting to seasonal demands Produce products . | Lecture 12 Capacity Management and Planning (continued) Books Introduction to Materials Management, Sixth Edition, J. R. Tony Arnold, P.E., CFPIM, CIRM, Fleming College, Emeritus, Stephen N. Chapman, Ph.D., CFPIM, North Carolina State University, Lloyd M. Clive, P.E., CFPIM, Fleming College Operations Management for Competitive Advantage, 11th Edition, by Chase, Jacobs, and Aquilano, 2005, N.Y.: McGraw-Hill/Irwin. Operations Management, 11/E, Jay Heizer, Texas Lutheran University, Barry Render, Graduate School of Business, Rollins College, Prentice Hall Objectives Managing Demand Tactics for managing demand Approaches to capacity expansion Breakeven analysis Decision tree and capacity expansion Net present value Capacity planning issues Managing Demand Demand exceeds capacity Curtail demand by raising prices, scheduling longer lead time Long term solution is to increase capacity Capacity exceeds demand Stimulate market Product changes Adjusting to seasonal demands Produce products with complementary demand patterns Tactics for Matching Capacity to Demand Making staffing changes Adjusting equipment Purchasing additional machinery Selling or leasing out existing equipment Improving processes to increase throughput Redesigning products to facilitate more throughput Adding process flexibility to meet changing product preferences Closing facilities Demand and Capacity Management in the Service Sector Demand management Appointment, reservations, FCFS rule Capacity management Full time, temporary, part-time staff Approaches to Capacity Expansion (a) Leading demand with incremental expansion Demand Expected demand New capacity (b) Leading demand with one-step expansion Demand New capacity Expected demand (d) Attempts to have an average capacity with incremental expansion Demand New capacity Expected demand (c) Capacity lags demand with incremental expansion Demand New capacity Expected demand 6 This slide probably requires some discussion or explanation. Perhaps the .
