We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Capacity and Forecasting - Research Paper Example

Comments (0) Cite this document
Summary
To: Vice President of Operations From: A.N. Consultant Date: Subject: Capacity and Forecasting Report Introduction Capacity planning and capacity utilization goes hand in hand. According to Inman (n.d.) capacity planning is the process that is utilized in order to decide how much capacity is required, and when the capacity is required to manufacture more products or to begin producing a new product…
Download full paperFile format: .doc, available for editing
Polish This Essay97.9% of users find it useful
Capacity and Forecasting
Read TextPreview

Extract of sample
"Capacity and Forecasting"

Download file to see previous pages Too much capacity is just as bad as too little. According to Wikipedia (2011a), excess capacity can drain a firm’s resources and prevent investments in projects that are more profitable. Insufficient capacity on the other hand could lead to unsatisfied customer demands. Analysis of capacity utilization The information presented indicates that capacity utilization at EMC is 92% with varying rates of utilization in different processes. The graph in Figure 1 below provides a visual illustration of the range of utilization rates for different processes. Figure 1 The graph indicates that plastic molding has the highest utilization rate and blanking machine the lowest. It is uncertain as to how the 92% was arrived at. However, it is a high utilization rate which suggests that an increase in demand by 10 to 15 percent may not be easily met on a 40 hour week shift. Only plastic molding and finishing processes are above 80% capacity utilization machine, assembly and packaging is below that level. Before deciding on whether additional capacity is required the capacity available should be determined. ...
There seem to be a bottleneck situation in molding and finishing. According to Goldman (n.d.) your bottleneck operation should never stop, it should be kept running during coffee breaks and lunch breaks. The impact of forecasts on future capacity needs According to Walonick (1993) a forecast is designed to assist in planning and making decisions in the present. However, regardless of the methods used there is no way to predict the future with certainty. Forecast could either suggest that we have more or less capacity than is required. If the forecast suggest that we need a higher level of capacity then this may mean that additional investments may have to be made in terms of space and equipment. It may also mean additional staff would have to be employed. However, there are a number of things that can be done in the short term until there is convincing information that an increase in demand is long term. Overtime work could be introduced on a regular basis, temporary contract workers could be employed or another shift could be introduced. While the things that can be done to increase capacity in the short term are relatively inexpensive, increasing capacity by building additional space is very costly if it is not fully utilized. EMC should be careful not to rush to permanently increase its capacity as there is a level of uncertainty in forecasting. Implications of incorrect forecasts There are two ways in which a forecast could possibly be incorrect. A forecast may suggest that more space as well as machinery and labor are required or it could possibly state that less of these elements are required. Incorrect forecasts could lead to unnecessary investments. Making ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Capacity and Forecasting Research Paper Example | Topics and Well Written Essays - 1000 words”, n.d.)
Capacity and Forecasting Research Paper Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/management/1431677-capacity-forecasting
(Capacity and Forecasting Research Paper Example | Topics and Well Written Essays - 1000 Words)
Capacity and Forecasting Research Paper Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/management/1431677-capacity-forecasting.
“Capacity and Forecasting Research Paper Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/management/1431677-capacity-forecasting.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
The business of Green Valley Bakers from the viewpoint of operations management

This research will begin with the statement that the daily activities of a business may seem to go on like clockwork, but it would be surprising to note that behind every activity and process like a lot of thinking, experimentation and even trial and error that has resulted in perfecting the present settings that are visible across the business.

11 Pages(2750 words)Research Paper
Capacity & Forecasting of Green Valley Bakers
The concepts of capacity utilization and forecasting techniques are very important for any business venture. Indeed, an entrepreneur or businessman will only venture to invest his capital in a business if he knows and understands that it will give him a good return on the capital invested.
5 Pages(1250 words)Research Paper
Marketing: Industry Forecasting
In the year 1806, the first car to run on fuel was created (Tiffany and Peterson, 2011). It used an engine that had an internal burning mechanism for producing energy. In the year 1885, the vehicles started using internal burning engines that used petroleum.
4 Pages(1000 words)Research Paper
Economic Forecasting
Economic forecasting is an important decision-making tool for governments and businesses as they project on the financial strategy and policy. Annualbudgeting and forecasting cannot keep pace with today’s vibrant business situation because the information produced is irrelevant andoutdated.
4 Pages(1000 words)Research Paper
Development Appraisal and Cost Forecasting
As the developer has no financial costs he can calculate the cost of the capital in the 11 years break even period at the rate of LIBOR. This decreases year by year and will be nil at the end of 11th year. In case of June 2006, the cost of development for square metre is 27500 GBP.
4 Pages(1000 words)Research Paper
Forecasting and Business Analysis
The method of forecasting employed is checked for the statistical significance of the regression model. It is important that the model must be significant in order to create a relevant and effective analysis (Heaton, 2008). OurVees, an international retail company, is considering an expansion of its business operations and market presence in Adelaide by the year 2010.
4 Pages(1000 words)Research Paper
Forecasting
New areas of business need stochastic forecasting, and there are large elements of technical and specialized judgment that Daimler Chrysler must deploy for such matters. Daimler Chrysler has a healthy mix of product lines, including brands that are icons and very creative ideas which are on the brink on becoming commercial successes.
4 Pages(1000 words)Essay
Types of Forecasting
Therefore to reduce the uncertainty in the future that can lead to a sacrifice in profits and at times revenues too, it is important for managers to forecast different aspects of business. There are various methods of
4 Pages(1000 words)Research Paper
Business and Economic Forecasting
the wage rates will increase the cost of production which will lead to increase in the prices of products and eventually decrease in the demand of the products, hence the production will decrease. Same is true for the transportation costs (Hoshmand, 2009). However, it is
2 Pages(500 words)Research Paper
Research paper summary Carrying capacity
This is due to review of available literature that point towards other causes of death of the ants in their nests. The paper combines both laboratory and field experiments to
2 Pages(500 words)Research Paper
Let us find you another Research Paper on topic Capacity and Forecasting for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us