Robust capacity expansion: methodologies and practice

This chapter explores capacity planning, balancing long-term strategic vision with short-term operational adaptability. We examine both long-term and short-term capacity expansion approaches, focusing on their objectives and strategies. Emphasising accurate demand forecasting, we discuss advanced techniques like time-series analysis and causal factor identification to help organisations stay ahead of market changes. We highlight robust capacity planning methods (minimax regret, stochastic programming, robust optimisation, reinforcement learning, and most productive scale size) to address uncertainties. By integrating emerging forecasting methods with real-world examples, we offer actionable insights for capacity planning, enabling organisations to navigate dynamic markets and achieve long-term growth and success.