Capacity and Inventory Flashcards
In terms of Capacity Mgmt what is the difference between Undercapacity and Overcapacity?
Overcapacity means resources available for use are not fully utilised.
Undercapacity means more production is demanded that org is able to produce
In terms of Capacity Mgmt what strategies can be used to deal with demand?
Level Capacity - firm builds inventory levels to cope with increases in demand
Chase Strategies - firm adjusts Operations in response to fluctuations in demand
Demand management - firm tries to influence demand
What are the three types of Resource Requirement Planning?
MRP; push based system. ‘Pushes work through’
OPT; optimised production technology. Used to identify capacity constraints and potential bottlenecks.
ERP; enterprise resource planning. Attempts to integrate all departments.
What are the four basic types of layout (physical set up) for production?
Fixed Layout - product remains in one location
Process Layout - product moves between different processes
Cell Layout - reduces complexity of Process Layout by using small clusters of Cells.
Product Layout - maximise product flow
