The Sage Course Companion on Operations Management is an accessible introduction to the subject that will help readers to extend their understanding of key concepts and enhance their thinking skills in line with course requirements. It provides support on how to revise for exams and prepare for and write assessed pieces. Readers are encouraged not only to think like an operations manager but also to think about the subject critically.

Long-Term Capacity Planning

Long-term capacity planning

The level at which management sets the level of capacity is a key determinant of the competitiveness of an organisation. This decision needs to be made within a long-term plan which provides a fit with the operations strategy of that organisation. Long-term capacity issues can be considered in terms of the volume of capacity required and the timing of when that capacity should be acquired.

Capacity Volume

In determining the optimum capacity level for a facility the concept of economies of scale is considered. Economies of scale relate to the capital costs of building a new facility and the fixed costs of operating a facility. The capital costs of building a facility do not increase proportionally as its capacity increases, so for ...

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