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Chapter 7

Chapter 7

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Published by: kapslforever on May 20, 2010
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© 2006 Prentice Hall, Inc.
S7 – 1
Supplement 7 –Capacity PlanningSupplement 7 –Capacity Planning
© 2006 Prentice Hall, Inc.
PowerPoint presentation to accompanyPowerPoint presentation to accompany Heizer/Render Heizer/Render Principles of Operations Management, 6ePrinciples of Operations Management, 6eOperations Management, 8eOperations Management, 8e
© 2006 Prentice Hall, Inc.
S7 – 2
Capacity Capacity 
The throughput, or the number of The throughput, or the number of units a facility can hold, receive,units a facility can hold, receive,store, or produce in a period of timestore, or produce in a period of time
Determines fixed costsDetermines fixed costs
Determines if demand will beDetermines if demand will besatisfied satisfied 
Three time horizonsThree time horizons
© 2006 Prentice Hall, Inc.
S7 – 3
Modify capacity Modify capacity Use capacity Use capacity 
Planning Over a TimePlanning Over a TimeHorizonHorizon
Intermediate- Intermediate- rangerange planning  planning SubcontractAdd personne Add equipmentBuild or use inventor Add shiftsShort-rangeShort-range planning  planning Schedule jobsSchedule personnel  Allocate machinery 
Long-rangeLong-range planning  planning  Add facilities Add long lead time equipment 
Limited options exist Limited options exist 
Figure S7.1Figure S7.1

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