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Capacity Management - Assignment Example

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Summary
The capacity measure in this company is the number of bottles of sodas produced per day. When the demand is high it will force the company to work extra hours to produce more sodas. (Dawei, 2009)
Airline such as Southwest or Delta. The capacity…
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Capacity Management
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CAPA MANAGEMENT QUESTION Brewery or soda bottling company. The capa measure in thiscompany is the number of bottles of sodas produced per day. When the demand is high it will force the company to work extra hours to produce more sodas. (Dawei, 2009)
Airline such as Southwest or Delta. The capacity measure here is the number of seats in the plane and the number of planes that are present. When the numbers are many, the management has to increase the number of flights or number of planes.The number of lanes and the customers served per given time may also be vital.
Movie Theater. The capacity measure is the number of seats that is in the theater. This means the equivalent of the people it will accommodate.Hours opened is also vital here.
Pizza Restaurant. The capacity measure is the number of seats that are present in the restaurant. This implies the number of people it can accommodate at sitting. Number of customers served and the pizza eaten can also count.
Amusement Park. The capacity measure is the number of people that can be allowed to the park at a given time to avoid crowding.
College admissions department. The capacity measure here is the number of students that are admitted. More students admitted calls for more departments.The number of lanes and the time that is taken by a student to be admitted is vital in measurement.
QUESTION 2
The business that I have chosen is the American Apparel, a firm that sells all types of casual wears. It uses the following reason to adjust its short-term capacity levels as explained below. (Mark, 2012)
Shifting work to slack periods.
The American Apparel buys more casual clothes of which the excess is stored. Since it uses FIFO method, those clothes that are much newer are stored. When the old stock reduces and the demand for the new arises they are released to the market for sale.
Change of labor skill mix
The company believes in the quality delivery and therefore it employs workers who have good credentials and good marketing skills. It also applies the cross training to update its employees on the upcoming trends and the needs of its clients.
Change of labor capacity and schedules.
The company has instituted overtime so as to maximize the sales and profit at the long run. Their are also extra shifts of which payment is made to the workers to encourage them to work hard.
Selling of unused capacity.
The company has many stores across the globe. The stores that do not record much sells are sold so that the company does not record losses.
Addition or sharing of equipment
The company share computer across their stores and other sister companies. The computers are integrated so that the control and the management of the inventories may be possible.
Works Cited
Dawei. (2009). Fundamentals of Supplly Chain Management. Mc-Gill Hall.
Mark. American Apparel. 2012. http://improject2012.blogspot.com/2012/03/competitors-analysis.html (accessed 2014). Read More
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