In chapter 5 we look at capacity management. Capacity determines the supply side of a business with the intent to meet demand (remember economics: supply and demand). You hear of capacity issues every day in newspapers and on the TV news, especially after natural disasters. With the development of electric cars and the rise of Tesla as a major player, the company has built (in process) a Giga-Factory to produce batteries. Watch the video and look up some articles in the past year to help answer the following questions.

A) Why would Tesla build the battery factory? What is its expected output and where or who will consume/use the product? What other competitors also supply batteries and what is their capacity? Compare capacities of the various competitors.

B) Looking at the Giga-factory capacity or output, is output ahead of demand or does it lag demand? Long term (15-20 years) does this factory have enough capacity for will more be Giga-factories? Who else is building a GIGA-Factory (look at major markets like EU and China). What is the expected demand for Electric Autos world wide should help in this answer.

C) Give an example of either a business or product that has required capacity expansion or the reverse, downsizing or closure? Recent events with Covid-19 might help! Be detailed in your example and provide data or specifics so that you can show and support your case.