7Capacity and Lot-Sizing Decisions
ALTHOUGH RESTRUCTURING YOUR MANUFACTURING along product-focused lines is a big step toward quick response, you will not tap its full potential until you also make the appropriate changes in the way you determine capacity and lot sizes. To review the traditional approaches to capacity and lot sizing and discuss their negative impact on responsiveness, I’ll begin this chapter by introducing some basics of manufacturing system dynamics. A current criticism of the way manufacturing management courses are taught is that managers fail to develop sufficient intuition about manufacturing system dynamics. In contrast, stock analysts learn about stock market dynamics, and good financial managers learn how to determine ...
