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Course Description

There are many situations in which businesses encounter capacity constraints. For example, a bagel shop might have limited oven space that determines how many bagels the shop can produce each day. Limited capacity becomes even more complex when businesses manage multiple types of inventory. If the bagel shop wants to bake more than one flavor, then the shop must carefully manage oven space to fit each batch. In this lesson, you will look at how to manage production when you have a capacity constraint. You will then explore using a hypothetical shadow price to allocate production capacity. Finally, to illustrate how supply chain analysts handle limited capacity, you will walk through a practice scenario for calculating the optimal production quantity for a newsvendor model with limited capacity. For the best result, complete "Optimize Production Capacity Allocation Decisions: Determine the Optimal Production Quantity Without Capacity Limit" prior to taking this lesson.

Benefits to the Learner

  • Make production inventory decisions to balance inventory costs
  • Optimize the production quantity for short-lifecycle products under capacity constraints
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Type
self-paced (non-instructor led)
Dates
Sep 28, 2023 to Dec 31, 2030
Total Number of Hours
1.0
Course Fee(s)
Regular Price $0.00
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