While adjusting capacity to match demand the
strategy stretch time, labour, facilities and equipment
is applied when
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When an organization has a clear grasp of its capacity constraints and an understanding of demand patterns. It is in a good position to develop strategies for matching supply and demand.
There are two general approaches for accomplishing demand and capacity.
The first is to smooth the demand fluctuations themselves by shifting demand to match existing supply.
The second general strategy is to adjust capacity to match fluctuations in demand
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