Capacity Management

Capacity Management

Capacity Management

Introduction

Most people think that the food industry is the only industry that can survive even in the recession period, It normally survive in recession as people need food to survive but talking in a broader way to improve the performance of resturants the managers have to implement these four strategies The first is a cost minimization strategy, which is also knows as operations strategy (OS) in this industry, in which a manager tries to minimize total cost by adjusting its prices and capacity. The second is a revenue maximization strategy, called marketing strategy (MS), in which a manager tries to maximize revenue minus variable cost by increasing capacity to attract customers and manipulate prices. The third is a joint strategy (JS) in which a manager tries to maximize profit by balancing revenue and cost from both the marketing and the operations perspectives.The fourth is a fixed price strategy (FS) in which a manager tries to maximize profit without changing price . The values of short-term indicators show that economic growth in the euro area slowed largely due to September's movements (manufacturing, construction). In the US, economic growth accelerated somewhat in the third quarter (0.6%), and GDP increased 3.2% year on year; economic growth in China remains high despite a slight moderation (10.6% year on year) (Lugosi, 2010, p. 3079).

Discussion

The economic recovery in the euro area is set to continue in the next two years, according to the autumn forecasts by the EC and the OECD. Both institutions revised upwards their GDP forecasts for this year and expect the recovery to continue steadily, yet at a slower pace than after previous recessions. The current recovery in the euro area is characterized by uneven prospects for individual Member States as a result of differences in production structure and in the geographical structure of exports, the degree of openness, vulnerability to the financial sector problems and particularly the extent of internal and external imbalances. At the level of the euro area, the forecasts for this year were mainly upgraded due to a faster spread of recovery factors than foreseen in the spring. Amid the rapidly growing global trade flows, exports recovered faster than expected, which lead to a slight pick-up in investment, in machinery and equipment, which was also positively impacted by high profits of enterprises and higher capacity utilization. Signs of recovery can also be seen in domestic consumption, which is expected to increase steadily over the next two years as a result of the stabilization and, in certain countries, even a visible improvement in the labor market, low inflation, low-interest rates and higher consumer confidence. According to the EC, GDP growth will slow in the first half of 201 1 due to a slower recovery of trade flows, the expiry of temporary incentives and a positive contribution to growth by changes in inventories, and particularly due to the anticipated fiscal consolidation, but it will begin to pick up gradually in the latter half of 2011 when global ...