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Concepts of Capacity Management

What are the possibilities of spending some of the capital budget on a machine and or tools? What are ways of improving setup time, improving quality, increasing capacity, and determining EOQs?

What would be a short-term and a long-term solution for this product line problem?


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Possibilities to Spend On Machines or Tools

Various factors are responsible for increasing and decreasing the demand of organizational plastic inserts such as quality, innovativeness, old designs, etc. The firm is facing a problem related to the diminishing of demand and acceptance by the customers of plastic inserts that decreased sales and profitability level of it (Bosch & Lee, 2010). It encourages the firm as well as manager to adopt the effective and advanced technical machines and tools that can produce plastics that would have more quality as previous and would be more effective in terms of designing and having better grades of plastic (Paquette, 2004). So, for this, some part of the capital budget may be spent over the machines and tools that can be used for the new technological dyes to produce quality plastics that can meet the standard expectations of the customers. Additionally, to sustain the quick changeover of the injected plastic along with reducing the lead time for the production, possibilities to invest in the machines and tools has increased (Xiong, 2006).

It is because it would be beneficial for the firm to produce high amount of quality plastic products at less time. Although it increased the production cost of the firm, benefits from ...

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The following posting discusses concepts of capacity management. Concepts covered include capital budgets, machines and tools.