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Configuration of the production framework includes planning related to the inputs, transformation procedure and outcomes of production operation. The fruitful management of capacity is an essential responsibility of production management. The aim of capacity management (i.e. control and planning of capacity) is to reach the operations level to the demand level.
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Capacity planning is to be performed taking into consideration future expansion and growth plans, sales forecasting, market trends, etc. It is an easy work to organize the capacity in case of demand which are stable. Yet in practical sense there will seldom be a stable demand. The demand fluctuation creates difficulties regarding the resource procurement to meet the demands of the customer. Capacity choices are naturally strategic. The rate of a facility’s productive capability is known as capacity. Capacity is generally depicted as output volume per time period.
Importance of Capacity Planning Assignment Help
Production managers are more specific about the capacity for the below mentioned reasons:
• Sufficient capacity is needed to reach the clients demand punctually.
• Capacity has an impact on the operation’s cost efficiency.
• Capacity has an impact on the scheduling framework.
• Capacity creation needs a huge sum of money to be invested.
• Capacity planning is the primary step when a company chooses to produce more or new items.
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