Effective Capacity Allocation and Planning

Company X has been manufacturing seven main classes of sanitary ware products, which demonstrate different trends in sales figures in recent years. Since all these products are produced using a common pool of resources, capacity planning and allocation becomes a challenging task for the company. In the context of this project, the group is expected to analyze historical sales data for the products and develop scenarios for the upcoming two years. Based on these forecasts, capacity requirements will determined using an allocation model. The results of the model is expected provide foresight about capacity expansion requirements. Additionally, the team is expected to run the allocation model independent of the forecasts in order to determine the optimal production mix that would yield the maximum profit. The deviation between the optimal allocation and the sales forecast will also be analyzed.