Perform a capacity analysis to determine if your company’s capacity in the segment you chose is adequate to meet fore casted demand by completing the following steps:
Enter in the requested information in the gold boxes from the Capstone Courier for the segment you’ve chosen.
Examine whether or not your company has enough capacity to meet potential demand and how much it would cost to purchase additional capacity.
Respond
Discuss the impact this analysis will have on your capacity investment decisions in the segment.
What other plans do you need to make (e.g., financing, etc.) to take advantage of this opportunity? Note: Remember that capacity investments take a year to take effect.
What elements will your company need to incorporate into its strategy to make sure that adequate capacity is available each year? For example, should you employ a “capacity trigger” to assist in your decision-making process, where if capacity utilization reaches a certain percentage, you will invecgost in set amount of additional capacity?
