Capacity Planning and Forecasting
What is your opinion on the questions below?
Question: How is capacity like the size of the hoses and tub in which water is flowing. Consider that there may be multiple tubs and hoses in a manufacturing business, as well as in other businesses. What role does customer demand play in capacity planning? Why is it necessary to do both short term and long term planning? What role does Line Balancing (bottleneck elimination) play in capacity. How are capacity, production, demand, and inventory related?