Capacity, supply chain, and footprint: the guide
Can we make and move enough: comparing demand with capacity along the chain, fixing the link that limits it at the lowest cost, and choosing where to place capacity.
Facts checked against sources onWhat strong candidates can do
- Compare demand with capacity at each link
- Find the link that limits the chain
- Compare fixes on cost, and choose a location on cost to serve
Common questions
What is a capacity or supply chain case?
Can we make and move enough: comparing demand with capacity along the chain, fixing the link that limits it at the lowest cost, and choosing where to place capacity.
How do you approach a capacity or supply chain case?
Compare demand with capacity at each stage of the chain, find the stage that limits output, and decide whether to add, move or buy capacity there.
What is the most common mistake in a capacity or supply chain case?
Adding capacity where there is already spare capacity instead of at the stage that limits output.
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