Professional Documents
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BY: Yukti Sood Mba Ist Year
BY: Yukti Sood Mba Ist Year
YUKTI SOOD
MBA Ist YEAR
CAPACITY
CAPACITY
• The ability of a worker, machine, work center
plant or an organization to produce output per
time period.
• Operation and supply chain managers must
make decisions regarding how much capacity
their organizations need and which types
• In making the decisions regarding capacity
managers must consider several issues:
• How capacity is measured;
• Which factors affect capacity; and
• The impact of supply chain on the
organization's effective capacity.
Measures Of Capacity
• Measurements vary widely. In general
companies measure capacity in terms of
inputs, outputs, or some combination of the
two.
• In organizations that provide standard
products capacity is likely expressed in terms
of outputs because output does not change
radically from one period to next
• In organizations that provide customized in
terms of inputs.
Factors that affect Capacity
• Control factor
• Product variation
• Conformance quality
Supply chain Consideration