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Balancing Demand and Capacity 03 11 10

Balancing Demand and Capacity 03 11 10

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Published by rahuljha11088

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Categories:Topics, Art & Design
Published by: rahuljha11088 on Nov 14, 2010
Copyright:Attribution Non-commercial

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04/23/2013

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Balancing Demand and Capacity
 
R
elating Demand to capacityFour key concepts
Excess Demand: too much demand relative tocapacity at a given time
Excess Capacity: too much capacity relative todemand at a given time
Maximum Capacity: upper limit to a firmsability to meet demand at a given time
Optimum capacity: point beyond whichservice quality declines as more customers areserviced
 
V
ariations in Demand
R
elative to Capacity
VOLUME DEMANDED
TIME CYCLE 1TIME CYCLE 2Maximum AvailableCapacityOptimum Capacity
(Demand and Supply Well Balanced 
Low Utilization
(May Send Bad Signals)
Demand exceeds capacity(business is lost)
Demand exceedsoptimum capacity(quality declines)
Excess capacity(wasted resources)
CAPACITY UTILIZED

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