CAPACITY AND LOCATION PLANNING Chapter 5

1
CAPACITY AND LOCATION PLANNINGChapter 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 -