Question

What is an important difference between capacity planning in services as contrasted to capacity planning in manufacturing operations?

Answer 1

Answer: the important contrast is how a variety of variables impact both operations in different ways. These variables are; time, location,demand fluctuation as well as utilization of resources.

Explanation: A manufacturing capacity planning is more dependent on time and location as every step of the manufacturing process is specific and certain regulations must be adhered to while service planning is a lot more flexible. Also in manufacturing planning, changes or fluctuations in demand can be taken care of with some inventory policies while changes in service capacity planning may involve overhauling the entire process.

Also, the way and manner the resources are utilizes impacts service planning and delivery while resources and their utilization are specific for manufacturing capacity building.