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Level Capacity Plan Definition and Explanation PDF | Download eBooks

Learn Level Capacity Plan definition in supply chain management with explanation to study “What is Level Capacity Plan”. Study level capacity plan explanation with SCM terms to review supply chain management course for online MBA programs.

Level Capacity Plan Definition:

  • An approach to medium-term capacity management that attempts to keep output from an operation or its capacity constant, irrespective of demand.

    Operations Management by Nigel Slack, Alistair Brandon-Jones, Robert Johnston



Level Capacity Plan Explanation:

Numerous organizations experience variable interest for their items. This is likely most discernible in items that have regular interest designs, for example, snow blowers or grass cutters, yet interest for different items may fluctuate apparently consistently. In such cases, organizations face a few unique alternatives satisfying need. For the most part, these alternatives fall into two "unadulterated techniques" - a pursuit procedure and a level methodology. Under the pursuit technique, creation is shifted as interest differs. With the level procedure, creation stays at a consistent level regardless of interest varieties. The utilization of a level system implies that an organization will create at a consistent rate paying little heed to the interest level. In organizations that produce to stock, this implies completed products stock levels will develop during low request periods and diminishing during intense interest periods. In specially make or amass to-arrange situations the build-up of requests will increment when request is high and reduction when request is low.

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