{"id":390,"date":"2018-06-20T13:47:58","date_gmt":"2018-06-20T13:47:58","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/suny-opmanagement\/?post_type=chapter&p=390"},"modified":"2018-07-09T13:14:42","modified_gmt":"2018-07-09T13:14:42","slug":"7-1-capacity-planning","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-opmanagement\/chapter\/7-1-capacity-planning\/","title":{"raw":"7.1: Capacity Planning","rendered":"7.1: Capacity Planning"},"content":{"raw":"
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Indian Institute of Technology: Professor Arun Kanda's \"Forecasting\"<\/h1>\r\n
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\r\n\r\nWatch this lecture for a detailed look at the importance of forecasting in identifying capacity requirements. Professor Kanda also reviews a variety of forecasting models along with the process of forecast control.\r\n\r\nhttps:\/\/youtu.be\/F6X_MAFpUVo\r\n\r\n<\/div>\r\n<\/div>\r\n
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10.5<\/span> Forecasting Demand<\/h1>\r\n
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Learning Objective<\/h3>\r\n
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  1. Forecast demand for a product.<\/li>\r\n<\/ol>\r\n<\/div>\r\n<\/div>\r\n

    It goes without saying, but we\u2019ll say it anyway: without enough customers, your business will go nowhere. So, before you delve into the complex, expensive world of developing and marketing a new product, ask yourself questions like those in Figure 10.5 \"When to Develop and Market a New Product\"<\/a>. When Bob Montgomery asked himself these questions, he concluded that he had two groups of customers for the PowerSki Jetboard: (1) the dealerships that would sell the product and (2) the water-sports enthusiasts who would buy and use it. His job, therefore, was to design a product that dealers would want to sell and enthusiasts would buy. When he was confident that he could satisfy these criteria, he moved forward with his plans to develop the PowerSki Jetboard.<\/p>\r\n\r\n

    \r\n\r\n[caption id=\"\" align=\"alignnone\" width=\"1037\"]\"image\" Figure 10.5 When to Develop and Market a New Product <\/em>[\/caption]\r\n\r\n<\/div>\r\n

    After you\u2019ve identified a group of potential customers, your next step is finding out as much as you can about what they think of your product idea. Remember: because your ultimate goal is to roll out a product that satisfies customer needs, you need to know ahead of time what your potential customers want. Precisely what are their unmet needs? Ask them questions such as these:Karl Ulrich and Steven Eppinger, Product Design and Development<\/em>, 2nd ed. (New York: Irwin McGraw-Hill, 2000), 66; and Kathleen Allen, Entrepreneurship for Dummies<\/em> (Foster, CA: IDG Books, 2001), 79.<\/span><\/p>\r\n\r\n