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Operations Notes – Capacity and Demand

Demand may be time variant (dynamic), uncertain. 3 main problems:

Ways demand can be managed (sometimes):

5 Overall Strategies to Manage Demand

Alternative to managing demand is to chase demand with flexible capacity:
The ability to chase demand depends on how flexible capacity is (various types of capacity must be considered).

Capacity Shortage Situations

Different types of capacity (labor, facilities, equipment) need to be balanced carefully.