Part A (10 marks)

The basic capacity management approaches include building adequate capacity to match with the required capacity (i.e., the demand). We have these basic capacity approaches:

Capacity chasing demand in small incremental steps

Capacity staying ahead of demand in small increments steps

Build excessive capacity in big chunks, and let the demand catch up over longer time

Build capacity equal to the average periodic demand

Through your personal or professional experience, or using independent research, provide a real-life example in each of the above capacity management scenarios, and provide a rationale for why this capacity management approach is appropriate for your example.

Part B (10 marks)

As a product goes through a life cycle of four phases (i.e., introduction, growth, maturity, and decline), its demand changes during these phases. Which capacity management approach is best suited for each life cycle stage of the product? Provide a rationale for your answer.

Part C (10 marks)

Given the fact that products in a firm are at different stages of their life cycles but they still share the resources of the firm, which capacity management approach you will employ from the options in Part A? Explain why.