In: Operations Management
List several alternatives for adjusting capacity. List several alternatives for managing demand.
The Seven alternatives for adjusting capacity:
1.The constant production rate with shifts which will not be affected for the production and the required demand to be met with the productivity.this is the Level production which is the alternative .
2.The Chase demand alternative with which the increase in the demand the resource employees need to be increased and if decrease in the demand the work force needed to be reduced with response.
3.The Overtime and under time is in which similar to the chase demand and here the demand increase in order to achieve the same need to increase the work time for the employee and with respect to decrease in the demand the time cut off needed.
4. Increasing the resource to ensure the demand need to be fulfilled and will make sure that the highest demand is achieved with any instant of time .
5.The subcontracting is the best option to meet the desired demand by utilizing the subcontract resources .
6.To full fill the demands can choose the part time employees to achieve the target.
7.Back ordering in another alternative method to ensure that company to maintain product sales and services,where in by ensuring that after sale of the produced product to market.
Approaches for the managing demand :
1. To control the demand management aggregation preplanning required.Also the promotions ,with incentive make the shift demands into the other time period as well.
2.By offering to the offset at low demand time periods.
3.By increasing the relation ship with supply chain in the form of sharing the information will lead to manage haziness with the demand periods.