Capacity Planning in Supply Chain Management
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Questions and Answers

What is the primary goal of capacity planning in supply chain management?

  • To minimize costs and maximize profits
  • To reduce workforce needs and increase automation
  • To ensure the supply chain is always ready to meet demand (correct)
  • To increase production capacity without considering demand
  • What type of capacity planning ensures you have enough products or ingredients for your deliverable?

  • Supply chain capacity planning
  • Product capacity planning (correct)
  • Tool capacity planning
  • Workforce capacity planning
  • Which of the following is a characteristic of the Lag Strategy in capacity planning?

  • Planning to have just enough resources to meet true demand (correct)
  • Planning to have no resources until demand is certain
  • Planning to have resources that match demand forecasts
  • Planning to have excess resources to meet demand forecasts
  • What is the first step in the capacity planning process?

    <p>Measure</p> Signup and view all the answers

    Which of the following is NOT a type of capacity planning?

    <p>Financial capacity planning</p> Signup and view all the answers

    What is the purpose of designing a work system?

    <p>To provide the structure for the productivity of the company</p> Signup and view all the answers

    Which capacity planning strategy involves planning to have enough resources to meet demand forecasts?

    <p>Lead Strategy</p> Signup and view all the answers

    What is the third step in the capacity planning process?

    <p>Formulate</p> Signup and view all the answers

    Study Notes

    Capacity Planning

    • A type of production planning that determines production capacity and workforce needs to meet demand.

    Types of Capacity Planning

    • Product Capacity Planning: Ensures enough products or ingredients for deliverables.
    • Workforce Capacity Planning: Ensures enough team members and work hours to complete jobs.
    • Tool Capacity Planning: Ensures enough tools to complete jobs.

    Basic Steps for Capacity Planning

    • Measure: Measure resource capacity.
    • Analyze: Analyze the measurements.
    • Formulate: Formulate a plan based on the analysis.

    Strategies for Using Capacity Planning

    • Lag Strategy: Plans to meet true demand, ensuring low costs.
    • Lead Strategy: Plans to meet demand forecasts, assuming more risk.
    • Match Strategy: The middle ground between lag and lead strategies, with frequent capacity planning.

    Designing a Work System

    • Objectives: Determine company objectives.
    • Operations Strategy: Develop a strategy to achieve objectives, providing the company's productivity structure.

    Work System Components

    • Job Design: Ensures each employee's duties and responsibilities align with the company's mission.
    • Methods Analysis: Eliminates unnecessary tasks and improves processes.
    • Work Measurement: Evaluates employee performance and compares alternative processes.

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    Description

    Learn about the three types of capacity planning in supply chain management: product capacity, workforce capacity, and tool capacity planning to ensure meeting demand.

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