label Business & Finance
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

How is process selection related to product design and capacity determination?

Jul 2nd, 2015

Thank you for the opportunity to help you with your question!

Capacity planning & process selection

1. Definition

2. Decision tree

3. Break-even analysis


Capacity: amount of goods that a firm is capable of producing over a specified period of time

Capacity planning: to specify the level of capacity (output rate) that will meet market demands in a cost-efficient way

Factors affecting capacity
1.  External factors: government regulations, union agreements
2.  Internal factors: product design, plant layout, process flow

Process -- activities involved in making a product

Types of processes

  • Conversion
  • Fabrication
  • Assembly
  • Testing
Process flow structures
  • Job shop
  • Batch
  • Assembly line
  • Continuous flow
Decision tree

Two types of nodes

  • Alternatives/Decision: square node
  • Event/State: circular node
  • Two types of branches
  • Choices available: from decision node
  • Probabilities of occurrence: from event node

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 2nd, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
Jul 2nd, 2015
Jul 2nd, 2015
Jun 29th, 2017
Mark as Final Answer
Unmark as Final Answer
Final Answer

Secure Information

Content will be erased after question is completed.

Final Answer