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CAPACITY AND LOCATION PLANNING Chapter 5 Forecasting demand –Forecasting methods. 197 –Formal v. Informal –Qualitative v. Quantitative –Qualitative methods:

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Presentation on theme: "CAPACITY AND LOCATION PLANNING Chapter 5 Forecasting demand –Forecasting methods. 197 –Formal v. Informal –Qualitative v. Quantitative –Qualitative methods:"— Presentation transcript:

1 CAPACITY AND LOCATION PLANNING Chapter 5 Forecasting demand –Forecasting methods. 197 –Formal v. Informal –Qualitative v. Quantitative –Qualitative methods: surveys, expert opinion, delphi –Quantitative methods: regression, moving averages, exponential smoothing Capacity: maximum rate of output 198 Capacity Utilization Timing capacity increments 203 Scale decisions: Economies of scale and scope 201

2 LOCATION DECISIONS Nature of the problem –Types of facilities –Types of objectives –Strategic nature of the problem –How does location affect capacity –Service location Factors affecting location decisions Decision making methods –Quantitative methods –Factor rating method

3 OTHER CAPACITY MANAGEMENT ISSUES Factors affecting capacity ST, MT and LT Capacity decisions Capacity of sequential processes –Discussed earlier under assembly line design Capacity of job shop processes –Layout discussed before Capacity and scheduling 220 –Scheduling priorities and rules Capacity and waiting lines 232 –Waiting line analysis Capacity and learning –Learning curves 226

4 SUPPLY CHAIN AND INVENTORY MANAGEMENT Chapters 7, 8 and 9 Supplier management 285 –Supplier selection 285 –Criteria Outsourcing –Advantages and disadvantages Inventory management –Functions of inventories 302 –Related costs 305 –Decisions 306 –Inventory review/re-order systems 307 Re-order point, periodic review and MRP systems

5 INVENTORY MANAGEMENT Classification – ABC analysis 311 EOQ method of review and ordering 314- Reorder point systems for uncertain demand 320 –Safety stocks MRP systems for dependent demand 332 -


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