Capacity Planning free essay sample

Capacity Planning Based on time horizon or duration it is viewed in three (i) Long-range Capacity Planning Time horizon is of more than one or two years. It is carried for productive resources which a long time. Long-range capacity planning requires participation and approval of top management personnel. (ii) Intermediate-range Capacity Planning It has a time horizon for 6 to 18 months. It may be varied by such alternative such as hiring off or laying off labour, purchasing or making new tools and minor equipments and outsourcing/sub contracting If time is fixed by customer’s required delivery date or processing cycle, it is possible to accept time as the primary constraint and plan backward to accommodate these times. Planning backwards to infinite capacity offers a potential solution to the problem. On the other hand, if the processing time is not a constraint in cases where products are produced to stock and sell, it is simpler to use a forward plan based on finite capacity i. We will write a custom essay sample on Capacity Planning or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page e. , based on available resources.