WAYS OF ADJUSTING CAPACITY IN SHORT RUN ARE

: 
use of overtime Increasing the number of shifts per day

to meet a temporary strong demand. Sub-contracting to other firms. Sub-

WAYS OF ADJUSTING CAPACITY IN LONG RUN
Once the long range capacity needs are estimated through long range-forecasts. There are many ways to rangeprovide for the needed capacity. In operation planning ,two conflicting constraints are time & capacity. If time is fixed by the customer¶s required delivery date or processing cycle .it is possible to accept time as the primary constraint & plan backwards to accommodate these items. On the other hand ,if the processing time is not constraint in cases where products are produced to stock & sell ,it is simpler to use a forward plan based on finite capacity.

OPTIMUM CAPACITY UTILIZATION
MACHINE REQUIREMENT:-In a manufacturing REQUIREMENT:concern, a substantial part of the financial resources are invested in the plant ,machine & Equipment. The optimum capacity utilization can be made as: 1.Making the optimum investment in plant & machines. 2.Making the optimum utilisation of installed production capacity. 3.The issue of machine requirement generally deals with line balance.

Following formula can assess how much machines are required for a particular operation so as to know how to optimally utilize the available capacity. N==ST*MP/MC*UC N= No. of machines ST=Standard time MP= Maximum production UC=utilization of machine capacity in %\ %\ MC= Maximum capacity