Location and Capacity Strategies Samples †MyAssignmenthelp.com

Question: Discuss about the Location and Capacity Strategies. Answer: This essay has been constructed in order to understand location and capacity strategies that leads to effective operational activities. It is known that capacity of any facility is explained as the rate of productive ability. A firm can explain their facility location and select the process technologies after it has discovered a need for innovative and expanded the facilities by expanding the facilities by assessing the level of capacity planning. It is seen that capacity requires to be understood on the level of demand forecasts. It is even seen that discovering the level of capacity thats is needed is dependent on the location of the capacity and that is even required to be determined. It is known that decisions with respect to locations are often undertaken in stages. It is known that long-term capacity planning makes use of the unit cost as a function of the size of the facility, economies of scope and economies of scale. The level of capacity with respect to the unit cost output has been found within the economies of scale in small size facility, medium size facilities and diseconomies of scale for very large facilities. The demand and life cycles for multiple outputs with respect to the size of facility comprises of demand seasonality and lifecycles output. The forecasting of the required organizational capacity from the multiple life cycles is essential to be discovered so that proper capacity can be attained. The timing of capacity increments are segregated into straddle, lead and lag. The capabilities and the decision of location are frequently driven too much by the considerations that are short-term in nature. It has been observed that short-term considerations comprises of the exchange rates and wage rates. In order to understand the better approach, it is important to consider that how the location has an impact on the enhancement of the long-term capabilities. It has been observed that this process consists of six steps that are inclusive of recognizing the sources of the value, identifying the capabilities that are required, evaluate the implications of the location decision on the enhancement of the capabilities, recognising the probable locations, then assessing the locations and finally to construct a strategy for establishing a network of locations. The stage one comprises of the regional international that looks to reduce the costs related to transportation and provide a service that is accessible, along with proper labour supply, rate of wage, unions, regional taxes, political stability and barriers of trade. The next stage that includes community comprises of the availability of acceptable locations, attitudes of the local government, tax incentives, attitudes of the community and the amenities that are available. The total weighted score that is used to understand the capacity with respect to location is evaluated by the formula iWiSi. Locating the pure services is possible by understanding the facility recipient that involves exploitation of the facilities, per person travel distance and distance of travel per visit. This service even involves the facility to the recipient. The effective utilisation of capacity through the schedule management is understood with the help of the production plan. The production plan is the outcome of the managerial repetition and transformations to the average plan. This plan is frequently disaggregated from one degree to major output groups. The production plan comprises of the average plan and the production plan. The master schedule refers to the point where the genuine orders are assimilated into the scheduling process. In this schedule, the average outputs are segregated into individual end items. It is seen that the rough-cut capacity planning refers to the feasibility evaluation of the master production schedule. The historical ratios of the loads are placed on the work-centres that are exploited. Priority planning involves the materials that are required during the feasibility examination of the master production to ensure that all the materials will be accessible when required. The capacity planning involves the internal control system and the master schedule exploited to gain the required capacity over the horizon of planning. This planning looks to record the reports that are gathered from each work centre and considers the inventory and lead times. The process of loading decides upon the fact that which are the jobs that requires to be assigned to which work centres. This is process is useful as at certain points some tools or employees are efficient for certain jobs. In the process of sequencing priority rules are often exploited. It is done after the jobs that are allocated to the work centres and the sequence in which to filter the task requires to be decided. The sequencing can have an effect on the timeliness of the completion of the job. The process of despatching i nvolves the physical release of a work order from the production planning. It is seen that expediting involves the job of getting the task done within the stipulated once it has been released to the floor shop. The next step involves the scheduling services that involves the revenue management and overbooking. This process tries to assign the fixed capacity of a service to compare the revenue requirement in the market place. The yield management becomes appropriate mostly in fixed capacity and perishable capacity. The short term capacity planning is helpful in increasing the resources, improves the use of the resources, alternatives for short-term capacity, capacity planning for services and modify the output. The rise in the resources involve overtime, add of shifts, subcontracts etc. the improvement of the use of the resources include scheduled appointments, inventory output and backlog demand. The substitute to the short-term capacity raises the resources, enhances the use of resource, and modifies the demand and output. It is even seen that psychology and queuing of waiting comprises of waiting-line analysis and the principles of waiting. The waiting-line analysis is a tool to explain the various significant measures of performance of the operating process. Cost of waiting and cost of service are the two trade-off costs of waiting line analysis. The various principles of waiting include the unoccupied time that feels higher than the time occupied, anxiety that makes waiting look longer, uncertain waiting is higher than the known finite waiting etc. It is seen that these are the various location and capacity strategies that would enhance the operations of any firm.