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Baxter International Inc. Capacity Management

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Baxter International Inc. is a global company which specializes in the production of medical supplies and services. Through its subsidiaries it provides life-saving solutions in bioscience such as (biopharmaceuticals, vaccines, biosurgery and transfusion therapies), medication delivery and renal therapy, which are used by health-care providers and their patients in more than 100 countries.

In order to keep up with worldwide demand the company is investing a further $70 million to further expand and upgrade its Bioscience facilities in California, Michigan, Italy, Belgium and Austria. “The expansions will provide greater flexibility in manufacturing and will increase production capacity for the company's plasma-derived therapeutic proteins.” (PRNewswire, 2001).

Companies can learn from this example, to increase their capacities to keep up with the increasing demand in developed and emerging markets. Companies can better leverage their production capabilities but will have to ensure that measures are put in place to maximize return on investment.

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YouSigma. (2008). “Baxter International Inc. Capacity Management." From http://www.yousigma.com.

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