____ is the term used to describe the ability of available resources to meet a certain level of demand. This is influenced by the size of the production ____, the number of ____, the available ____ on the production line, ____ facilities and available ____. ____ goes hand in hand with understanding ____ demand. Commonly used capacity management strategies include: ____ strategy means a business determines capacity and waits until there is an actual steady increase in demand. In a ____ strategy the business increases capacity ahead of actual demand. A ____ strategy makes small adjustments to capacity in an attempt to keep up with demand. A ____ strategy relies on market trends to determine capacity. Manufacturing resource planning (____) looks more widely at: 1. ____, ( what are we able to make currently) 2. ____ ( what resources are available) 3. ____. ( what are the financial limitations A ____ is a stage in a process where limited capacity reduces the efficiency of the whole process. Analysis of these can be done using ____ diagrams. ____ are anything which holds a value for a business. ____ assets - ____ and Inventory ____ assets - Plant and ____, Land and Buildings ____ assets - ____, Trademarks and Patents The life cycle of an asset is divided into four stages. 1. ____: assess the need and what value the asset will add. 2. ____: purchase the asset within budget and, if required, fund the costs of installation, set-up. 3. ____ and maintenance: the asset is in use and generating revenue for the business. Maintenance costs may become higher as the asset ages. 4. ____: the asset is removed from service and either sold, repurposed, thrown away or recycled. A replacement may be purchased, and the cycle begins again. By taking a ‘____’ approach, a company can capture the total cost of owning an asset over its entire life, from purchase to disposal, including maintenance costs over its lifetime. The new machine will also be subject to a calculation of ____ over its lifetime: its intrinsic value will ____ year on year

MBroT Unit 15 Stock Revision 2

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