strategic capacity planning-Meaning & factors
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What is Strategic Capacity Planning and the factors impacting it?
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The answer contains the meaning of strategic capacity planning and the factors impacting the strategic capacity planning.
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Meaning of strategic capacity planning:
Strategic capacity planning is the planning with respect to level of output of manufacturing unit for the particular period and the amount of resource inputs available relative to output requirements at a particular time. Here, the term capacity means upper limit or ceiling on the load that an operating unit can handle. While making strategic capacity planning, it is necessary to plan
1. Type of capacity
2. Amount of capacity
3. When it is required
4. How the productivity is related to capacity
There are two strategies for capacity planning: a) expansionist strategy .In this case, the firm has more capacity than the present requirement therefore it can be ahead of competitors in case of more demand and there are no lost sales. ...
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