For a company of your choice (Real company), select a service process that experiences demand fluctuations. Discuss the implications for how capacity must be managed. What capacity level is appropriate for the process so as to meet average as well as peak demand? What time window would you use to match capacity with demand?

For a process of your choice, discuss what issues would be involved in a capacity expansion, in particular the timing and size of the expansion. What would be the advantages and disadvantages of an expansionist vs. wait-and-see strategy? Which one would you recommend?

For the capacity expansion decision above, describe how you would use cash flow analysis to assess the financial impact of the decision.

For the capacity expansion decision above, what are the uncertainties involved in the expansion decision? Describe how you would use decision tree analysis to assist with the decision.