After reading this chapter, you should be able to:
Define long-term capacity and its relationship with economies and diseconomies of scale.
Understand the main differences between the expansionist and wait-and-see capacity timing and sizing strategies.
Identify a systematic four-step approach for determining long-term capacity requirements and associated cash flows.
Describe how the common tools for capacity planning such as waiting-line models, simulation, and decision trees assist in capacity decisions.