Ch09

Chapter 9 – Capacity Planning & Facility Location Operations Management by R. Dan Reid & Nada R. Sanders 2 nd Edition © Wiley 2005 PowerPoint Presentation by R.B. Clough - UNH

Learning Objectives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Capacity planning ,[object Object],[object Object],[object Object],[object Object],[object Object]

Measuring Capacity Examples ,[object Object],[object Object],[object Object]

Capacity Information Needed ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Calculating Capacity Utilization ,[object Object],[object Object],[object Object]

Example of Computing Capacity Utilization: In the bakery example the design capacity is 30 custom cakes per day. Currently the bakery is producing 28 cakes per day. What is the bakery’s capacity utilization relative to both design and effective capacity? ,[object Object],[object Object]

How Much Capacity Is Best? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Best Operating Level and Size ,[object Object],[object Object],[object Object],[object Object]

Other Capacity Considerations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Making Capacity Planning Decisions ,[object Object],[object Object],[object Object],[object Object]

Evaluating Capacity Alternatives ,[object Object],[object Object],[object Object],[object Object]

Example Using Decision Trees: A restaurant owner has determined that she needs to expand her facility. The alternatives are to expand large now and risk smaller demand, or expand on a smaller scale now knowing that she might need to expand again in three years. Which alternative would be most attractive? ,[object Object],[object Object],[object Object],[object Object],[object Object]

Evaluating the Decision Tree ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Facility Location ,[object Object],[object Object],[object Object],[object Object],[object Object]

Location Factors ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

More Location Factors ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Should Firm Go Global? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Location Analysis Methods ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

A Load-Distance Model Example: Matrix Manufacturing is considering where to locate its warehouse in order to service its four Ohio stores located in Cleveland, Cincinnati, Columbus, Dayton. Two sites are being considered; Mansfield and Springfield, Ohio. Use the load-distance model to make the decision. ,[object Object],[object Object]

Calculating the Load-Distance Score for Springfield vs. Mansfield ,[object Object]

The Center of Gravity Approach ,[object Object],[object Object],[object Object]

Break-Even Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Example using Break-even Analysis: Clean-Clothes Cleaners is considering four possible sites for its new operation. They expect to clean 10,000 garments. The table and graph below are used for the analysis. ,[object Object],[object Object],[object Object]

The Transportation Method ,[object Object],[object Object],[object Object],[object Object]

Chapter 9 Highlights ,[object Object],[object Object],[object Object],[object Object]

Chapter 9 Highlights (continued) ,[object Object],[object Object],[object Object]

Ch09

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