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7: Strategic Capacity Planning

  • Page ID
    117795
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    A worker trying to move a stack of boxes taller than he is.  Other boxes are stacked nearby.
    Learning Objectives
    • What are common capacity strategies?
    • Calculate efficiency and utilization measures.
    • Describe factors that determine effective capacity.
    • Understand the steps in the capacity planning process.
    • Determine the capacity in a sequential process with a bottleneck.
    • Use break even analysis to evaluate capacity alternatives.

    This module examines how important strategic capacity planning is for products and services. The overall objective of strategic capacity planning is to reach an optimal level where production capabilities meet demand.


    7: Strategic Capacity Planning is shared under a CC BY-NC 4.0 license and was authored, remixed, and/or curated by LibreTexts.