operations and supply chain management.pptx

5–1Operations andSupply Chain ManagementCHASE | SHANKAR | JACOBS14e5–apacityManagement Chapter FiveCopyright ? 2014 by The McGraw-panies, Inc. All rights -Hill/Irwin35–3Copyright ? 2014 by McGraw Hill Education (India) Private Limited. All rights Objectives?LO5–1: Explain what capacity management is and why it is strategically important.?LO5–2: Exemplify how to plan capacity.?LO5–3: Evaluate capacity alternatives using decision trees.?LO5–4: Compare capacity planning in services to capacity planning in manufacturing5–4Copyright ? 2014 by McGraw Hill Education (India) Private Limited. All rights of Scale Made of Steel?The Economics of Very Big Ships?Economy of Container Ships–Allows a T-shirt made in China to be sent to herlands for just cents.–The Eleonora Maersk and the other seven ships in her class are among the largest ever built:–Almost 400 m long, or the length of four er fields, and another half-field across. –The ships can carry 7,500 or so 40-foot containers, each of which can hold 70,000 T-shirts. ?On this voyage, the Eleonora was carrying supplies for Europe’s New Year celebrations: 1,850 tons of fireworks, including 30 tons of –5Copyright ? 2014 by McGraw Hill Education (India) Private Limited. All rights Management in Operations?Capacity – the ability to hold, receive, store, or modate?In business, viewed as the amount of output that a system is capable of achieving over a specific period of time?Capacity management needs to consider both inputs and outputs5–6Copyright ? 2014 by McGraw Hill Education (India) Private Limited. All rights Planning Time Durations?Greater than one yearLong range?Monthly or quarterly plans covering the next 6 to 18 monthsIntermediate range?Less than one monthShort range5–7Copyright ? 2014 by McGraw Hill Education (India) Private Limited. All rights Capacity Planning?Determining the overall level of capacit