Capacity Planning Objectives - Assessment Answer

1. Capacity Planning Objectives : The capacity planning division is currently considering two objectives---maximizing profit and maximizing ROI (Return on Investment)---for choosing the right capacity investment levels for Cheetah production facility, Barracuda production facility and joint testing facility. a) Do these two objectives result in the same capacity investment plan? Why (not)? b) If we need to choose one objective, which objective should we focus on and why? 2. Value of flexibility for testing facility (2 points): The testing facility is designed to serve for both (Cheetah and Barracuda) production lines. a) Is there a value of having joint facility in comparison with the case where each production line has a separate testing facility? If yes, where does the value come from? (b) Does this value depend on demand uncertainty? Why (not)? 3. Capacity Investment Portfolio a) In choosing the right capacity investment plan, should Seagate focus only on balanced capacity portfolios---where the total capacity of two production lines equals to the capacity of the joint testing facility? b) What are the implementation challenges of unbalanced capacity portfolios? Complete this 3 questions, try to provide in details and request not to copy from the case study by write your own words (attach is the case study)