What is resource capacity planning used to accomplish?
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What is resource capacity planning used to accomplish?
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Ensure that the company always has enough resources on hand for production.
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Buy the correct amount of materials to use up all available capacity in a factory.
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Plan the right production
schedule so that all labor is being used efficiently. -
Ensure adequate but not excessive supply of capacity-related resources.
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- Barker Company produces and sells a single product with budgeted or standard costs as follows: Inputs Standards Direct materials 10 lbs at $10.00 per pound Direct labor 8 hours at $12.50 per hour Variable factory overhead 8 hours at $20.00 per hour Fixed factory overhead 8 hours at $40.00 per hour Overhead rates are based on 8,000 standard direct labor hours per month, i.e., this is the master budget denominator activity level. Desired ending inventories of materials are based on 10% of the next months materials needed. Desired ending finished goods are based on 5% of next periods budgeted unit sales. Unit Sales are budgeted as follows: January February March April 1,000 1,200 1,600 1,400 The budgeted sales price is $1000 per unit. Sales are budgeted as 80% credit sales and 20% cash sales. Past experience indicates that 60% of credit sales are collected during the month of sale, 38% are collected in the following month, and…True or False: "Capacity planning is concerned with determining the maximum output an organization can achieve within a given period."Explain and expand these importance of capacity planning. 1. Capacity decisions have a real impact on the ability of the organization to meet future demands for products and services. 2. Capacity decisions affect operating costs. 3. Capacity is usually a major determinant of initial cost. Typically, the greater the capacity of a productive unit, the greater its cost.
- How does capacity planning contribute to efficient system management? Provide real-world scenarios to illustrate its importance.How does capacity planning contribute to effective system management, and what factors should be considered during this process?How does capacity planning contribute to effective system management?
- True or False: Capacity planning in operations management involves ensuring that a company's resources, including equipment, labor, and facilities, are able to meet current and future demand levels efficiently.Explain how the capacity analysis responds when a large number of processes are running at the same time.A firm recently built a new plant that will use more than 50 production lines and machines to produce over 500 different products. The production scheduling decisions are critical because sales will be lost if customer demand is not met on time. If no individual in the firm has had experience with this production operation, and if new production schedules must be generated each week, why should the firm consider a quantitative approach to the production scheduling problem?
- State the advantage and disadvantage of varying the workforce in accordance to the predicted changes in demand requirements.Describe the process of capacity planning in IT resource management and the importance of scaling resources to meet demand.Sales and Operations Planning is a process of balancing resources and forecasted demand. A) True B) False
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