Purchase Solution

Capacity Planning & Forecasting

Not what you're looking for?

Ask Custom Question

Capacity Planning & Forecasting

What is your opinion on the questions below?

(1) How is capacity like the size of the hoses and tub in which water is flowing. Consider that there may be multiple tubs and hoses in a manufacturing business, as well as in other businesses. What role does customer demand play in capacity planning? Why is it necessary to do both short term and long term planning? What role does Line Balancing (bottleneck elimination) play in capacity. How are capacity, production, demand, and inventory related?

Purchase this Solution

Solution Summary

This solution extensively discusses capacity and the analogy to the tub in which water is flowing. The solution also discusses customer demand and its role in capacity planning, line balancing, bottlenecks, and inventory.

Solution Preview

(1) How is capacity like the size of the hoses and tub in which water is flowing? Consider that there may be multiple tubs and hoses in a manufacturing business, as well as in other businesses.

- When we discuss capacity, we're discussing production capacity. Management is attempting to determine the total amount of capacity that can be handled to make a profit, without leaving money on the table (not fulfilling demand), and to the point where resources aren't strained, causing a potential excess expense. We can compare this to hoses going into the tub. If the water jams the hoses, it's going to create a bottleneck. The resources must be planned so that the water runs smoothly with no constraints (or as close to no ...

Purchase this Solution


Free BrainMass Quizzes
Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Introduction to Finance

This quiz test introductory finance topics.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.