Develop a plan to match capacity with demand during an unbalanced system
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An excellent question in our forum – Discussion Two: Develop a plan to match capacity with demand during an unbalanced system.
I am going with Capacity.
In chapter 5, we have learned that a match between demand and the capacity of the process is the ideal situation for our organization. Excess capacity is wasteful and costly, on the other hand, too little capacity means customer dissatisfaction and lost revenue. However, process variation and demand variability can make the achievement of a match between process output and demand difficult. To keep the balance in our system, there are a bunch of planning strategies. Some of them focused on demand management (strategies to reduce/increase demand) and some of them were based on capacity management (strategies to reduce/increase capacity). Please pick one of these strategies and explain your plan to achieve the goal match between demand and supply.
GO WITH CAPACITY
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