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Capacity Planning (Facilities Decisions (How large should each facility…

- - - - Positive capacity cushion
      - Build capacity ahead of need
    - - Small or negative capacity cushion
      - Lower risk strategy
  - - - Transportation, taxes
      - Lead time
      - ROI, NPV
    - - Worker and customer attitudes
      - Language, norms
      - Proximity to customers, suppliers, competitors
  - - - Production costs are not linear
      - Overhead spreads over more units
    - - Increased transportation costs
      - Cost of more bureaucracy
      - Increased organisational complexity