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Capacity planning is composed of three individual stages, which are briefly elaborated below.
Level Capacity Plan –
this particular stage is committed to controlling and monitors the individual level of stock with the company. The mechanisms as part of the stage are planned for maintaining the same degree of production capacity for the company regardless of the demand. With the help of the activities adopted in the certain stage, the company aims to stabilise the employment, lowering the cost of unit, and higher utilisation of processes (Park, Ungson, and Cosgrove 2015). However, level capacity planning induces the company the need for production storage and inventory, rather than the falling sales. Therefore, Nestle should need to consider the “shelf-life” factor critically to control the situation efficiently when the production exceeds the demand. On the other hand, Nestle deals with the food products, which are non-durable goods. Based on the understanding, it is evident, that the certain stage of planning also brings some vital challenges for Nestle other than the identified benefits.
Chase Demand Plan –
demand chase plan is exactly opposite to the level capacity planning. Chase demand related planning process deals with the products that cannot be stored and should be sold immediately. The food and beverage product sold by the company is the effective example of such type of goods (Mahalder 2014). As part of this particular planning, the production process is controlled by the company to produce the equal number of goods as demanded by the target market. The particular approaches as part of the identified planning are introduced by Nestle under some certain conditions, especially during the picks and falls of demand in the identified market at a given period. Some of the critical measures embraced by Nestle during the period are:
• Reduction or extension of working days
• Recruiting human capital on a part-time basis
• Developing a full-time employment or laying off extra staffs

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