Operation Management Summer Final Exam XXXXXXXXXXWhat elements are included in a strategic level capacity plan? Please list 6 items and explain through real life examples. (2 points) XXXXXXXXXXWhat...

Operations Management        6
OPERATIONS MANAGEMENT
Table of Contents
Response to the Questions    3
Question 1    3
Question 2    4
Question 3    4
Question 4    5
Question 5    6
Question 6    7
References    8
Response to the Questions

Question 1
The strategic level capacity plan is based on "produced to stock and sell" approaches that vary in the production system are operated at uniform production levels and finished goods inventories rise and fall depending upon whether the production level exceeds demand or vice versa from the period to period. This means that the capacity is kept constant throughout the planning period regardless of the fluctuations in the forecast demand. The elements of the level capacity planning are:
· Facilities are important to determine the effective capacity of the organization. For example, facilities like the location, the layout of the work area and environmental factors effectively determine the capacity.
· The design of the company's products and services accepts a significant influence on capacity utilization.
· Process for example the technology that is used to produce effectively determines the capacity.
· Human factors, for example, the job design, the nature of the job, and the experience required to perform the job are the human factors that influence the rate of output.
· Operation factors like materials management, Quality Assurance, maintenance policies, inventory problems effectively determine the capacity of the organization.
· The elements of external factors also contribute to the capacity of the organization. For example, pollution controls, regulations, safety requirements, and so on.
Question 2
Level aggregate plans maintain a constant workforce, set capacity to accommodate the average demand, and are often used for make-to-stock products like appliances. While the chase aggregate plans produce exactly what is needed in each period and sets a labor or equipment capacity to satisfy the demands of that period. The input data that is used in aggregate planning are cost data, capacity data, and demand data. The cost data includes the labor costs, inventory holding cost, hiring and firing costs shortage cost, and material cost. The...