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There\'s an interesting \"case study\" of capacity planning available at: http:/

ID: 1184378 • Letter: T

Question

There's an interesting "case study" of capacity planning available at: http://web.archive.org/web/20061021210002/http://www.samag.com/documents/s=7769/samteamquest0314wp/teamquest1212suppl_wp.pdf Take a look at it. Then we'd appreciate your thoughts on (a) the common industry practice of labeling as a "case study" what is obviously an advertisement, and/or (b) how much and about what someone is supposed to learn from such a piece. This has a direct bearing on what you're learning in this course; 'tis said that "a little learning is a dangerous thing", and we're worried that perhaps you're learning just enough to be somewhat dangerous when dealing with specialized topics like this. Your thoughts...?

Explanation / Answer

A multi-site capacity planning problem recently developed, which contained location dependent transportation costs and budgeting constraints as well as sales, prices and advertisement costs as variables, was developed. A combination of low prices and advertisement can be a good strategy coupled with capacity planning expansions. Future work will include larger initial investment, uncertainty and risk.

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