In essence, capacity constraints can affect a merger assessment in two ways. First, if merging parties’ rivals are capacity-constrained, they will be less of a competitive threat because they are less able to compete for additional sales. This is likely to increase the competition authority’s concerns about the merger. Capacity planning is a technique used to identify and measure overall capacity of the production. Lets discuss in detail about what is capacity planning, its classification and goals.
Analyze and apply the Capsim Mini-Case Study entitled “R&D.” (Important: Always click the Capsim button to access Capsim). To access Capsim case studies, click “eText and Cases” from the left navigation menu, as shown below:Your Capsim company makes electronic sensors.
Selling Capacity Returns: Capacity can be sold at the beginning of the year for $0.65 on the dollar of the original investment. If you replace later, it costs the full amount. If you sell capacity for less than its depreciated value, you lose money (which will reflect as a write-off on your income statement).