GSCM206 Capacity and Constraint Management

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GSCM206 Capacity and Constraint Management
Describe the concept of capacity and how managing capacity can improve operations and the supply…

 

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GSCM206 Capacity and Constraint Management

GSCM206 Capacity and Constraint Management

Discussions Week 4 All Students Posts 36 Pages 

Describe the concept of capacity and how managing capacity can improve operations and the supply chain flow of goods and services. In operations and supply chain management, many people like to use complex definitions to sometimes impress others. When you think about most of the definitions we already covered in this course; they are quite easy to understand. Can you think of other terms given to Capacity and Constraint Management that businesses use? What is the TOC concept that is used by Operation Managers (OM’s) to manage bottlenecks in an operation?

A Clothing Factory wants to increase capacity by adding a new sewing machine. The fixed costs for machine A are $9,000 and its variable cost is $4 per unit. The revenue is $7 per unit. The break-even point for the sewing machine is?  Class, the term Capacity and Constraint Management has different meanings to different industries. However, the industry as a whole defines the concept, capacity is how…