Introduction

Capacity Decisions Are Strategic

Defining and Measuring Capacity

Determinants of Effective Capacity

Strategy Formulation

Steps in the Capacity Planning Process

Forecasting Capacity Requirements

Calculating Processing Requirements

Additional Challenges of Planning Service Capacity

Do It In-House or Outsource It?

Developing Capacity Strategies

Constraint Management

Evaluating Alternatives

Cost–Volume Analysis

Financial Analysis

Decision Theory

Waiting-Line Analysis

Simulation

Operations Strategy

Case: Outsourcing of Hospital Services

Supplement: Decision Theory