These decisions place physical constrains on the amount that can be produced, and they often required significant capital investment. Therefore, facilities decisions involve all rganizational functions and often are made at the highest corporate level. The facilities strategy considers the amount of capacity, the size of facilities, the timing of capacity changes, facilities locations, and the types of facilities needed for the long run. ” It must be coordinated with other functional areas due to the necessary investments that in finance area, marketing look for market sizes that determine the amount of capacity needed, workforce issues related to staffing new facilities that ave to be consider by human resources, accounting have to estimate costs of new facilities and engineering should consider technology decisions regarding equipment investment.

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The cross-functional team meets with general manager to agree on the sales forecast, the supply plan, and any steps needed to modify supply and demand that drive any business company. Schroeder, R

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