Alternative Capacity

Management Strategies

Maria Victoria B. Miguel

Level
Capacity Ignore demand flactuation

Keep nominal capacity level constraints

 The same number of staff and operate the
same process
Demand

Capacity
Non perishable goods (e.g, steel
production, household production and
v
canned goods).
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Time
Chase
Demand The opposite of level capacity, which
attempt to match capacity closely to the
varying levels of forecast demand.
 This is much more difficult to achieve
Demand than a level capacity, as different number
of staff, different working hours and even
different amounts of equipment may be
Capacity
necessary for each period.

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Time
Demand
Management
A strategy of capacity management that
attempts to change or influence demand to
fit available capacity.
 Demand Demand
Capacity Capacity

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Time Time
 Use part-time employees

Cross-train employees

Adjusting Capacity Outsource

to Match Demand Rent or share facilities of equipment

Schedule downtime during periods of low

demand

Modify or move facilities amd equipment