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Outline the options which can be used to increase or decrease capacity to match current demand

      

Outline the options which can be used to increase or decrease capacity to match current demand

  

Answers


Ruth
i. Hire/ lay off
By hiring additional workers an needed or by laying off worker not currently required to meet demand, firm can maintain balance between capacity and demand
ii. Overtime
By asking or requiring workers to work extra hours a day or an extra day per week, firms can
create a temporary increase in capacity without the added expense of hiring additional workers.
iii. Part time or casual labor
By utilizing temporary workers or casual labor.
iv Inventory
Finished goods inventory can be built up in periods of slack demand and then used to fill demand during period of high demand. In this way no new workers have to be hired no temporary or casual labor is needed and no overtime is incurred.
v. Subcontracting
Frequently firms choose to allow another manufacturer or service provider to provide the product or service to the subcontracting firm’s customers. By subcontracting work to an alternative source, additional capacity is temporarily obtained.
vi. Cross training
Cross training employees may be able to perform tasks in several operations creating some
flexibility when scheduling capacity.
NatalieR answered the question on June 10, 2022 at 13:53


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