Purpose:
- Incorporate the business needs into an efficient supply chain
- Analyze and lead the key initiatives necessary to make supply chains efficient
Overview
Strategies for adjusting capacity. In Chapter 14 (page 609) there are seven steps in the strategies for adjusting capacity:
- Producing at a constant rate and using inventory to absorb fluctuations in demand (level production)
- Hiring and firing workers to match demand (chase demand)
- Maintaining resources for high-demand levels
- Increasing or decreasing working hours (overtime and undertime)
- Subcontracting work to other firms
- Using part-time workers
- Providing the service or product at a later time period (backordering)
Action Items
- Post discussion starter. Discuss the advantages, and disadvantages of using part-time workers, subcontracting work, and building up inventory as strategies for meeting demand.
- Give an example of a real business, or school, or a medical facility such as Target, Columbus City Schools, FedEx, Cleveland Clinic, etc. Be sure to cite your sources in APA Style format.
***Assigned Text***
Russell, R. S., & Taylor, B. W. (2019). Operations and Supply Chain Management (10th ed.). Wiley Global Education US. https://reader2.yuzu.com/books/9781119577645