Capacity management is a strategic issue. If it is not properly planned and impl

Question

Capacity management is a strategic issue. If it is not properly planned and implemented, it might impact the overall success of a firm. In The World Is Flat: A Brief History of the Twenty-First Century, Thomas L. Friedman wrote about capacity management and globalization as part of the strategies of companies. On the basis of your understanding of strategic capacity management, discuss the concept of outsourcing and offshoring as a strategy to manage capacity. Is this a trend, or does it appear to be a long-term strategy for companies? Do not think just about US companies. Look for examples of non-US companies as part of your research.

Explanation / Answer

Capacity Management Strategy enables you to identify underused capacity and opportunities for consolidation. You can then reallocate capacity as necessary and monitor the impact. Simply doing this can save you money on previously wasted resources. But from there, it

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