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 (B)</p> Signup and view all the answers

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

<p>Financial capacity planning (B)</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 (C)</p> Signup and view all the answers

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

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

What is the third step in the capacity planning process?

<p>Formulate (B)</p> Signup and view all the answers

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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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