Â Discussion Post:
- Post one new topic andÂ two replies to classmates for this discussion.
- The posts should be based on topics covered in the text or current events that you may read in the newspaper, on the internet, or in a magazine.
- Your grade will be based on the quality of your contribution, how you have tied your contribution to what you have learned, and your professional communication skills.Â Â
Chapter 9â€“ Capacity Planning
& Facility Location
R. Dan Reid & Nada R. Sanders
Welcome to Chapter 9 â€“ Capacity Planning and Facility Location. In this session, weâ€™ll be looking at a variety of ways capacity planning is completed as well as several different methods that could be used to decide where to locate a facility.
- Define capacity planning and location analysis
- Describe relationship between capacity planning and location, and their importance to the organization
- Explain the steps involved in capacity planning and location analysis
- Describe the decision support tools used for capacity planning
- Identify key factors in location analysis
- Describe the decision support tools used for location analysis
Learning objectives to be looked at include:
- Defining capacity planning and location analysis.
- Describe the relationship between capacity planning and location and their importance to the organization.
- Explain the steps involved in capacity planning and location analysis.
- Describe the decision support tools used for capacity planning.
- Identify key factors in location analysis.
- Describe the decision support tools used for location analysis.
After studying this chapter, youâ€™ll have the ability to objectively evaluate different location options and build a confidence level based on the formal methods used to select a site.
- Capacity is the maximum output rate of a production or service facility
- Capacity planning is the process of establishing the output rate that may be needed at a facility:
- Capacity is usually purchased in â€œchunksâ€
- Strategic issues: how much and when to spend capital for additional facility & equipment
- Tactical issues: workforce & inventory levels, & day-to-day use of equipment
Weâ€™ll first evaluate capacity planning. The definition of capacity is the maximum output rate of a production or service facility. An organizationâ€™s capacity is constrained based on the amount of equipment, amount of space, and the amount of labor. Out of these three, typically the easiest and quickest to correct is the amount of labor. The other two require capital dollars to address.
Capacity planning is a must for any organization. The output rate of goods, the speed at which a product can be shipped or the number of people that can be serviced all have impacts on the firmâ€™s success an
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