Capacity
by Kacha Anuchitchanchai
1. Demand
1.1. Demand>Capacity
1.1.1. increase price
1.1.2. increase capacity
1.2. Capacity>Demand
1.2.1. Stimulate market
1.2.2. Product Change
1.3. Adjusting to seasonal demands
1.3.1. complimentary demand pattern
2. Planning
2.1. Estimate future cap
2.2. evaluate existing cap
2.3. alternative
2.3.1. inhouse
2.3.2. outsource
2.3.3. do nothing
2.4. fin analysis
2.4.1. Payback
2.4.2. Net Present Value (NPV)
2.4.2.1. F=P(1+i)^N
2.4.3. Internal Rate of Return
2.4.4. Etc.
2.5. key qualitative
2.6. select one alter
2.6.1. What-if scenario
2.7. implement chosen one
2.8. Monitor result
3. Output Rate
3.1. economies of scale
3.1.1. cost decrease when output increase
3.2. Diseconomies
3.2.1. cost decrease then increase
4. Bottleneck
4.1. Maximum output rate limited by this bottleneck
5. Breakeven Analysis
5.1. total cost = total revenue
5.1.1. TR=TC Px = F + Vx
5.1.2. BEPx = F/(P-V)
5.2. total cost
5.2.1. Fixed cost
5.2.2. Variable cost
6. Measurement of capacity
6.1. Design Capacity
6.2. Effective Capacity
6.3. Actual Output
7. Efficiency and Utilization
7.1. Efficiency
7.1.1. Actual output/Effective Capacity
7.1.2. 36/40 = 90%
7.2. Utilization
7.2.1. Actual Output/Design Capacity
7.2.2. 36/50 = 72%