Operations Management: Processes and Supply Chains, 12th Edition

4 Capacity Planning

Learning Goals

After reading this chapter, you should be able to:

1. Define long-term capacity and its relationship with economies and diseconomies of scale.

2. Understand the main differences between the expansionist and wait-and-see capacity timing and sizing strategies.

3. Identify a systematic four-step approach for determining long-term capacity requirements and associated cash flows.

4. Describe how the common tools for capacity planning such as waiting-line models, simulation, and decision trees assist in capacity decisions.

Tesla Motors

Tesla’s battery charging station emphasizes the close connection between the electric car and ...