I have actually sold turn off capacity and positioned all commodities to be approximately 120% plant utilization.

You are watching: How to increase plant utilization in capsim

I read that the tree utilization rate must be in between 120% and also 150%. However, if utilizing the broad differentiation strategy, it says that it must avoid 2nd shift and also overtime. Which one is an ext important?

In addition, if the tree utilization rate stays in between 120% and 150%, isn't over there idle capacity that incurs excess labor, depreciation, and also interest expenses? have to I try to gain it closer come 180% tree utilization every round to minimize idle capacity, or would the expenses of buying brand-new capacity each round (due to raising demand) exceed the palliation of idle capacity's expenses around 180% plant utliization?

The well balanced scorecard gives full credit for 100%-180% plant utilization. Therefore, is there an ideal plant utilization rate for every round if making use of the vast differentiation strategy?


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level 1
· 1y
Attempting come a avoid 2nd shift utilization is wrong.

200% use is most effective when you have actually high automation, even if you get punishes for it


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level 2
Op · 1y

Thanks because that the tip!


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level 1
· 1y

Ideally the is 200% however maintaining that is going to journey your revenues down through either buying volume every year, offering will reason write-offs which room recoded under expenses. I would imply you plan your volume in two stages. Very first stage buy/sell volume in round 1 to meet forecasted capacity needs for ring 4, second stage buy capacity in round 4 to accomplish expected capacity requirement for ring 8. Her plant utilisation won't it is in ideal however it will conserve you a lot on expenses in the long run.

See more: Out Of The Loop Meaning - Out Of The Loop Definition And Meaning


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level 2
Op · 1y

Thanks for the tip!


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level 1
· 1y
Capsim Tutor

Try to keep it between 120-150, trying to be precise on your volume utilization will just expose girlfriend to risks of no having enough capacity the following round which will be an ext costly than the few bucks you will certainly make this one by trying come hit 180%.


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level 2
Op · 1y

Thanks because that the tip!


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