Question

State and describe four approaches that can be

used to manage capacity in order to meet predictable
variability.

Answer 1

To manage capacity and meet predictable variability, businesses can use adaptive management, utilize renewable alternatives, mitigate resource intermittency, and employ estimation techniques. these approaches help in adjusting capacity to accommodate changes in demand or supply and ensure operational stability.

Step-by-step explanation:

Managing capacity to meet predictable variability involves several approaches that can help a business stabilize its operations and prepare for changes in demand or supply. Four such approaches include:

1. Adaptive Management: This involves continuously monitoring outcomes, evaluating the effectiveness of management actions, and making necessary adjustments. this iterative process is particularly useful in situations with high levels of uncertainty.
2. Use of Renewable Alternatives: By finding renewable resources that can meet constant demand, businesses can avoid the shocks of finite resource depletion as renewable resources can potentially provide a consistent supply ad infinitum.
3. Mitigating Resource Intermittency: Certain resources such as wind and solar energy, are prone to intermittency. A strategy to manage this challenge includes diversifying the energy mix or using storage solutions to ensure a constant supply.
4. Estimation Techniques: Developing a strong understanding of how variables are related can aid in creating effective estimations, which in turn can help in forecasting and thus in preparing for capacity-related challenges.

Each of these approaches addresses different aspects of capacity management and can be used jointly to create a robust system equipped to handle predictable variability.