What method would you use to measure the capacity of Fitness Plus
160 PART 1 MANAGING PROCESSES
opened within the past year in locations 10 to 15 minutes from Fitness Plus.
The first, called the Oasis, catered to the young adult crowd and restricted the
access of children under 16 years old, The other facility, Gold’s Gym, provided
excellent weight and cardiovascular training only.
As the owners thought about the situation, they had many questions:
Were the capacities of the existing facilities constrained, and if so, where? If
capacity expansion was necessary, should the existing facility be expanded?
Because of the limited amount of land at the current site, expansion of some
services might require reducing the capacity of others. Finally, owing to
increased competition and growth downtown, was now the time to open a
facility to serve that market? A new facility would take 6 months to renovate,
and the financial resources were not available to do both,
Fitness Plus, Part B, explores alternatives to expanding a new downtown
facility and is included in the Instructor’s Resource Manual. If you are interested
in this topic, ask your instructor for a preview.
QUESTIONS
1. What method would you use to measure the capacity of Fitness Plus?
Has Fitness Plus reached its capacity?
2. Which capacity strategy would be appropriate for Fitness Plus? Justify
your answer.
3. How would you link the capacity decision being made by Fitness Plus to
other types of operating decisions?
Solution preview for the order on what method would you use to measure the capacity of Fitness Plus
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