Capacity Planning and Control

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Questions and Answers

What is the primary focus of capacity planning and control?

  • Optimizing supply chain logistics
  • Maximizing production efficiency
  • Maintaining a balance between demand and capacity (correct)
  • Minimizing inventory levels

What is a potential consequence of inadequate capacity planning?

  • Enhanced supply chain coordination
  • Improved forecasting accuracy
  • Increased production efficiency
  • Unmet customer demand (correct)

What is a key consideration in capacity strategy development?

  • Inventory turnover rates
  • Production scheduling flexibility
  • Matching capacity with demand (correct)
  • Supply chain resilience

Why is capacity planning important in operations management?

<p>To ensure sufficient capacity to meet demand (D)</p> Signup and view all the answers

What is a benefit of effective capacity planning and control?

<p>Increased customer satisfaction (C)</p> Signup and view all the answers

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Study Notes

Capacity Planning and Control

  • Capacity planning and control is a critical issue that every operation faces.
  • It aims to strike a balance between the demand placed on an operation and its ability to meet that demand.
  • Capacity planning and control is a crucial activity that significantly impacts the efficiency and effectiveness of an operation.

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