ABSTRACT
This chapter helps to understand the strategic importance of capacity and to utilize specific approaches to managing scheduling. Strategic capacity management–knowing the maximum as well as the attainable inputs and output capabilities within a period of time–enables the firm to make vital strategic decisions. In some operations, management focuses very much on utilization. The major challenge of capacity management is therefore fundamentally about matching the productive output of the operation with market demand. In markets where there is high variation and variability, the complexity of capacity management can be reduced if there is a high degree of certainty about what demand will be. Business units may vary in a number of different ways–sales volume, sales revenue, operating capacity, number of employees and so on. Paul Wahlburgers is trying to differentiate itself by being both a restaurant like Umami and the Counter and a fast-food joint like Shake Shack and Smash Burger.
