Er case

Rafli elzandri
Case ER

• Pro :
• The company produces at average demand levels throughout the year rather than change capacity from
one period to the next. When demand is less than average, the extra units go into inventory. When
demand exceeds production, the extra units come out of inventory.
• Producing at average demand levels allows your company to invest less in capacity
• Simple and logical procedure for computing seasonality.
• Cons :
• Make sure seasonality is actually present.
• Using average demand to assess Capacity Requirements forecasting seasonality , and this method can use
for ER to assess capacity requirements, because ER department doesn’t have sufficient capacity to meet
demand when tourists arrive in peak periods
1. Identify Capacity Requirements
• Assest forecasting Capacity  forceasting
seasonality
• Capacity cushion
• Strategic implication  benchmark to other
company
2. Assest capacity alternatife
• Do nothing
• Expand large now
• Exapand small now with option to add later
3. Evaluate Capacity alternatife
• Using Decission tree
• Assest Expected Value