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Discussion Questions
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  1. What capacity problems are encountered when a new drug is introduced to the market?
  2. List some practical limits to economies of scale; that is, when should a plant stop growing?
  3. What are some capacity balance problems faced by the following organizations or facilities?
    1. An airline terminal.
    2. A university computing center.
    3. A clothing manufacturer.
  4. What are some major capacity considerations in a hospital? How do they differ from those of a factory?
  5. Management may choose to build up capacity in anticipation of demand or in response to developing demand. Cite the advantages and disadvantages of both approaches.
  6. What is capacity balance? Why is it hard to achieve? What methods are used to deal with capacity imbalances?
  7. What are some reasons for a plant to maintain a capacity cushion? How about a negative capacity cushion?
  8. At first glance, the concepts of the focused factory and capacity flexibility may seem to contradict each other. Do they really?







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