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GSBS6610 Operations and Supply Chain Management: Tutorial 2 Associate Prof. Ramaswami Sridharan
GSBS6610 Operations and Supply Chain Management: Tutorial 2 Associate Prof. Ramaswami Sridharan
a. An airline Terminal: The passengers at an airport keep changing over the year or over a
period of time. The airlines using the airport may expand their fleet to accommodate more
passengers. In such cases the seating capacity may not balance the varying amount of
passengers. Similarly, the waiting lounges, shopping area, toilets capacity balance faces
problems when passengers vary. And to facilitate arrival and departures of all the flights, the
number of gates or terminals faces problems. Expansion seems to a solution to this problem,
but passengers increase in peak Holiday season only. Hence, expanded area may not be
useful during off season.
b. A university computing lab: Balance can be achieved in the initial stages by estimating the
number of students admitted to the university and the capacity of the lab. But the growth in
the number of students joining each year varies. And, technology keeps changing every now
and then. In such cases, capacity balance gets disturbed in a university lab. Students may
become more and computers less!
c. A clothing manufacturer: If a huge order is placed by a customer and needs delivery in a
short time, then the capacity balance is lost. The manufacturer might need to expand the
factory and hire more staff to complete the order or he could get the employees to work
more shifts.
High 0.4
6 million 12 million
Small facility
0 million
Do Nothing
Large facility
Low 0.6
9 million 10 million
2
Sunil Kumar bula 3106954
GSBS6610 Operations and Supply chain
Management
Do nothing 0 million
Hence from the above calculation, a small factory is the best alternative to generate profits.