What are the capacity approaches in supply chain management?
Understand the Problem
The question is asking about different capacity approaches within the context of supply chain management. This involves exploring strategies and methods used to manage and optimize capacity in supply chains, likely including concepts such as capacity planning, managing bottlenecks, and balancing supply and demand.
Answer
Lead, lag, and tracking strategies.
The main capacity approaches in supply chain management are lead, lag, and tracking (or match) strategies.
Answer for screen readers
The main capacity approaches in supply chain management are lead, lag, and tracking (or match) strategies.
More Information
The lead strategy involves adding capacity in anticipation of increased demand, the lag strategy adds capacity only when demand has exceeded current capacity, and the tracking strategy seeks a balance, adding capacity incrementally as demand grows.
Tips
A common mistake is confusing the tracking strategy with lag strategy, as both manage existing demand, but tracking is proactive.
Sources
- Capacity Strategy in Supply Chain Management - scm.ncsu.edu
- Capacity Planning Strategy - The Best Guide 2025 - throughput.world
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