Briefly describe how uncertainty affects capacity decisions.

Capacity management in businesses is a function of their operations and environment. In today’s business world, evaluating and managing capacities is becoming significantly more difficult. Therefore, managers need to do a balancing act to reduce costs and effectively utilize available capacities.

Using the Argosy University online library resources and the Internet, research capacity management.

Then respond to the following:

  • Which type of operation has a more difficult time managing capacities: an environment supporting standardized products or one supporting customized products? Why? State your reason(s) and provide examples.

After your initial post, discuss the following:

  • Among other decisions an operations manager makes, the one pertaining to capacities is the most critical. Why is it considered a critical decision? Which area do you think is more challenging as it pertains to capacity planning? Make sure your answer addresses the productivity aspect as well as the uncertainty element.
  • Briefly describe how uncertainty affects capacity decisions.
  • Why is capacity planning for a service more challenging than it is for a goods producer?
  • How do capacity decisions affect productivity?

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