A process currently services an average of 50 customers perday. Observations in recent weeks show that its utilizationis about 90 percent, allowing for just a 10 percent capac-ity cushion. If demand is expected to be 75 percent of thecurrent level in five years and management wants to have acapacity cushion of just 5 percent, what capacity requirementshould be planned?
A process currently services an average of 50 customers perday. Observations in recent weeks show that its utilizationis about 90 percent, allowing for just a 10 percent capac-ity cushion. If demand is expected to be 75 percent of thecurrent level in five years and management wants to have acapacity cushion of just 5 percent, what capacity requirementshould be planned?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A process currently services an average of 50 customers per
day. Observations in recent weeks show that its utilization
is about 90 percent, allowing for just a 10 percent capac-
ity cushion. If demand is expected to be 75 percent of the
current level in five years and management wants to have a
capacity cushion of just 5 percent, what capacity requirement
should be planned?
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