BEO3430 International Economics Analysis Dr. Jeeresak Pongpisaanupichit Homework 1. After listening to me read chapter 11 and apply the textbook material to my lecture. Strategic Capacity Planning is determining the overall capacity level of capital intensive resources, including facilities, equipment, and overall labor force size. And can be receive, store, accommodate.  <table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="background-color: transparent; border: #ece9d8"><div><p style="margin: 0cm 0cm 0pt; text-align: center" class="MsoNormal" align="center">Rate of output actually achieved</p></div></td></tr></tbody></table>          Capacity Utilization: we can calculate about Capacity utilization rate = Capacity used <table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="background-color: transparent; border: #ece9d8"><div><p style="margin: 0cm 0cm 0pt" class="MsoNormal">Capacity for which the process was designed</p></div></td></tr></tbody></table>                                                                   Best operating level   They can show the highest of product or best utilization recorded unit per… ( Week, month, and year)Capacity Focus: Concept of focused factory holds that production facilities work best when they focus on a fairly limited set of production objectives.Capacity Planning: *Frequency of Capacity Addition: Two type of costs. Costs of up grading too frequently and cost of upgrading too infrequently.*External Sources of Capacity: Sometimes better to use external source than to upgrade.Capacity Flexibility: *Flexible plants, *Flexible processes, *Flexible workers.Planning Service Capacity vs. Manufacturing Capacity:Time: Good can not be stored for later use and capacity must be available to provide a service when it is need.Location: Service goods must be at the customer demand point and capacity must be located near the customer.Volatility of Demand: Much greater than in manufacturing. 2. Apply to case of Thailand. In case studyThe Energy Strategy and Policy project was to develop suggested strategies and an action plan to meet the needs of Thailand’s national energy policies in terms of overall conservation in the use and development of energy resources. For purposes of this Energy Strategy and Policy program activities have been included, in addition to the areas of energy resource conservation such as transportation energy use, renewable energy resource utilization, and increased efficiency in supply-side resource utilization (power generation, transmission, distribution), and energy fuel conveyance (e.g., oil and gas pipeline transportation). RecommendationsIt is advised that Thailand consider modifying its current conservation strategies to reflect the following general principles: <ol><li class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify; tab-stops: list 36.0pt">Compulsory minimum efficiency standards applied only to new buildings, and compulsory testing and labeling of selected categories of new appliances andequipment.</li></ol><ol><li class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify; tab-stops: list 36.0pt">An aggressive and complementary market transformation strategy to support development of both market infrastructure to deliver, and market awareness to demand, conservation products and services.</li></ol><ol><li class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify; tab-stops: list 36.0pt">Promotion of “best energy management practices” to seek voluntary actions with financial incentives in existing commercial buildings for at least the next 2-3 years. If voluntary progress proves ineffective, there could be reinstatement of the compulsory approach of the Designated Buildings program. If so, emphasis should be on performance targets and not the current procedural orientation.</li></ol><ol><li class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify; tab-stops: list 36.0pt">A voluntary market-based approach for upgrading efficiency in existing factories (continuing financial incentives, but departing from the current procedural orientation of the Designated Factories program) and encouraging consumer purchases of very high efficiency appliances and equipment that exceed minimum electrical efficiency levels established by the compulsory standards. A case may exist for selective initial financial incentives to motivate purchase of very high efficiency appliances.</li></ol>The philosophy behind these recommendations is to continue to rely on financial incentives to influence the short-term adoption of energy efficiency measures, and gradually to reduce these as a self-sustaining market in energy efficiency investments and upgrades is developed. Over time, the cumulative effects of compulsory codes and standards on incremental decisions will grow to become a larger share of annual energy efficiency savings.