| Article ID: | iaor19911958 |
| Country: | United States |
| Volume: | 31 |
| Start Page Number: | 55 |
| End Page Number: | 59 |
| Publication Date: | Jul 1990 |
| Journal: | Production and Inventory Management Journal |
| Authors: | Melnyk Steven A., Narasimhan Ram |
This article examines the problem of satisfying production requirements with a capacity-constrained situation. Two options are studied: capacity expansion and reducing capacity requirement (setup reduction). A simple procedure is presented for helping the manager evaluate the relative effectiveness of these two options. An example to illustrate the overall usefulness of the procedure is included.