discuss recent supply and commodity shocks and their impact on operations management. As part of the discussion feel free to address the following concepts:

Determinants of Effective capacity 1. Facilities - layout, ability to expand, size, etc

2. Product and service factors 3. Process factors - productivity, quality factors, flexibility in switching between products 4. Policies - overtime, etc 5. Operational factors - inventory levels, quality control procedures, etc 6. Supply chain factors - suppliers, warehousing, transportation, distributors 7. External factors - pollution issues, union contracts, etc Strategy Formulation - 1. Leading capacity strategy - build capacity before demand hits 2. Tracking capacity strategy - add capacity in small increments as demand increases 3. Following capacity strategy - build capacity after demand has increased

Other Factors - 1. Growth & volatility in demand 2. Costs of building and operating various levels of capacity 3. Rate & direction of technological innovation 4. Likely behavior of competitors 5. Availability of capital and other inputs