Ch 3 - Strategic Capacity Management 2011 S

Ch 3 - Strategic Capacity Management 2011 S - Strategic...

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Strategic Capacity  Management Chapter 3
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Strategic Capacity Planning Capacity - the amount of output that a process is capable of achieving over a specific period of time. Strategic capacity planning is an approach for determining the overall capacity level of capital intensive resources, including facilities, equipment, and overall labor force size
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Capacity Decisions Capacity Number of units a facility can hold, receive, store, or produce in a period of time Balancing Act Too much? Too little? Ideal facilities Lost customers
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Capacity Planning Concepts Capacity Utilization Economies of Scale/Scope Capacity Focus Capacity Flexibility Changing Capacity Determining Capacity Requirements
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Capacity Utilization Capacity used is the rate of output actually achieved Best operating level is the capacity for which the process was designed level operating Best used Capacity rate n utilizatio Capacity =
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Best Operating Level Underutilization Best Operating Level Average unit cost of output Volume (tons shipped) Overutilization
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This note was uploaded on 10/13/2011 for the course MGT 302 taught by Professor Baker during the Spring '09 term at Miami University.

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Ch 3 - Strategic Capacity Management 2011 S - Strategic...

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