Managing the balance between capacity and demand
ID:CVMCD

Video Overview

It is very important for an organisation to be able to produce what it can sell. The organisation will therefore need to find a balance between what it can produce and how much is demanded by the consumers of the product. Too much demand in relation to capacity creates disorder in an organisation as staff scramble to keep up with the work. In fact, organisations frequently express their concern about the unpredictable demand for the product. However if this is investigated it is often found that much of the demand for the product is predictable. In addition, many organisations find ways to control their capacity in order to meet the demand for their product. In this tutorial we will take a look at how to manage the balance between the organisation's capacity to produce a product and the demand for the product.