Course Description

Supply Chain Management and Capacity Planning

Supply Chain Management (SCM) is the coordination and optimization of all processes involved in the production and delivery of goods and services. It encompasses procurement, manufacturing, transportation, warehousing, and distribution, ensuring that products reach customers efficiently and cost-effectively. Effective SCM minimizes costs, reduces delays, and enhances customer satisfaction by streamlining operations and improving communication across suppliers, manufacturers, and distributors.

Capacity Planning, a crucial component of SCM, involves determining the production and resource capabilities needed to meet current and future demand. It ensures that a company has the right amount of labor, equipment, and facilities to produce goods or provide services without excessive costs or underutilization of resources. Capacity planning strategies include lead strategy (expanding capacity in anticipation of demand), lag strategy (increasing capacity after demand rises), and match strategy (gradually adjusting capacity in response to market trends).

By integrating capacity planning into SCM, businesses can avoid bottlenecks, improve efficiency, and maintain a competitive edge. Organizations must continuously assess market trends, demand fluctuations, and supply chain risks to optimize performance. A well-managed supply chain with strategic capacity planning leads to increased profitability, better resource utilization, and enhanced customer satisfaction in dynamic business environments.