adjusting capacity to reflect the fluctuations in demand
what is a chase demand approach
ignore the fluctuations and keep activity constant
what is a level capacity plan?
attempt to change demand to fit capacity
what is demand management
a company that usually cannot store inventory
what type of organisation would use a aches demand plan?
promotional activity or discounting
what is something you might do to hchange your demand patterns?
Process task
Process flow
volume and variety
what are the three dimensions of process type?
long term
medium term
short term
what are the three different types of planning and control?
not dependent on other products or services
independent demand
dependent on the other products or services
dependent demand
produce prior to demand and can store inventory
make to stock
are almost the same- except resource to order buys in resources and produce only when demanded
make to order already have their resources but only produce when asked
resource to order and make to order
long term capacity strategy: storing for future demand
medium demand and capacity: what do we need in a few months?
short term capacity: what resources do we have today and tomorrow
3 types of capacity
measuring demand and capacity
alternative capacity plans
choosing an approach
yield management
3 steps of capacity planning
only when the advantages strongly outweigh the disadvantages
when are the three steps of capacity planning applied?
planning is future intention, while control is exercised to ensure the plan is delivered
what is the difference between planning and control
based on an external stimulus, it must be forecast
how does independent demand affect operations?
can be calculated from planned output or volume
how does dependent demand affect operations?