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An airline company must plan its fleet capacity and its long-term
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- An airline company must plan its fleet capacity and itslong-term schedule of aircraft usage. For one flight seg-ment, the average number of customers per day is 70,which represents a 65 percent utilization rate of the equipment assigned to the flight segment. If demand isexpected to increase to 84 customers for this flight seg-ment in three years, what capacity requirement should beplanned? Assume that management deems that a capacitycushion of 25 percent is appropriate.arrow_forwardAn airline company must plan its fleet capacity and its long-term schedule of aircraft usage. For one flight segment, the average number of customers per day is 70, which represents a 65 percent utilization rate of the equipment assigned to the flight segment. If demand is expected to increase to 99 customers for this flight segment in three years, what capacity requirement should be planned? Assume that management deems that a capacity cushion of 20 percent is appropriate. The needed capacity requirement is [A] customers per day. (Enter your response rounded up to the next whole number.)arrow_forwardAn airline company must plan its fleet capacity and its long-term schedule of aircraft usage. For one flight segment, the average number of customers per day is 70, which represents a 65 percent utilization rate of the equipment assigned to the flight segment. If demand is expected to increase to 92 customers for this flight segment in three years, what capacity requirement should be planned? Assume that management deems that a capacity cushion of 15 percent is appropriate. The needed capacity requirement is_____________customers per day. (Enter your response rounded up to the next whole number.)arrow_forward
- A company has a factory that is designed so that it is most eficient (average unit cost is minimized) when producing 15,000 units of output each month. However, it has an absolute maximum output capability of 17,250 units per month, and can produce as little as 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 10,925 units in October, what is the capacity utilization rate in October for this factory?arrow_forwardAn airline company must plan its fleet capacity and its long-term schedule of aircraft usage. For one flight segment, theaverage number of customers per day is 70, which represents a 65 percent utilization rate of the equipment assigned to theflight segment. If demand is expected to increase to 84 cus-tomers for this flight segment in three years, what capacityrequirement should be planned? Assume that managementdeems that a capacity cushion of 25 percent is appropriatearrow_forwardAn airline company must plan its fleet capacity and long-term schedule of aircraft usage. For oneflight segment, the average number of customers per day is 70, which represents a 65 percentageutilization rate of the equipment assigned to the flight segment. If demand is expected toincrease to 84 customers for this flight segment in three years, and management requires acapacity cushion of 25 percent, calculate the following: i. the planned capacity requirement. ii. the maximum number of customers the flight segment can accommodate.iii. the efficiency rate of the flight segment assuming that the current effective capacity of theflight segment is 93 customers.arrow_forward
- In the bakery, we have established that design capacity is 30 pies per day and effective capacity is 20 pies per day. Currently, the bakery is producing 27 pies per day. What is the bakery’s capacity utilization relative to effective capacity?arrow_forwardEx 5 Fitzsimmons & Fitzsimmons (2008) compare 2 capacity management strategies. Part of their comparison is presented below: Capacity plan: Level Capacity Chase Demand Customer waiting Generally low Moderate High Long run Labour skill level Low Forecasting Short run a) Motivate why the forecasting horizon is longer for Level capacity plans. b) Which assumption is used to reach the conclusion that a level capacity plan has a shorter customer waiting time?arrow_forwardA manufacturer of ballet shoes has determined that its production facility has a design capacity of 300 shoes per week. Theeffective capacity, however, is 230 shoes per week. What is themanufacturer’s capacity utilization relative to both design andeffective capacity if output is 200 shoes per week?arrow_forward
- Southeastern Oklahoma State University's business program has the facilities and faculty to handle an enrollment of 2,200 new students per semester. However, in an effort to limit class sizes to a "reasonable" level (under 200, generally), Southeastern's dean, Holly Lutze, placed a ceiling on enrollment of 1,500 new students. Although there was ample demand for business courses last semester, conflicting schedules allowed only 1,400 new students to take business courses. What is the utilization rate for Southeastern? (enter your response as a percentage rounded to one decimal place). 63.6% 68.2% 90% 92.5% 93.3%arrow_forwardAn executive conference center has the physical ability to handle 1,100 participants. However, conference management personnel believe that only 1,000 participants can be handled effectively for most events. The last event, although forecasted to have 1,000 participants, resulted in the attendance of only 950 participants. What are the utilization and efficiency of the conference facility?arrow_forwardThomas Pang Furniture produced 70,000 Executive chairs per week. The effective capacity is 71,000 chairs. The production line operates 5 days per week with two 6-hour shifts per day. The line was designed to process the Executive chairs at the rate of 1,200 per hour. Determine the design capacity, utilization and efficiency for this plant when producing the Executive chair. Thomas Pang Furniture now needs to increase production of the Executive chairs. A second production line will be added. Effective capacity on this second line is the same as the first line at 71,000 Executive chairs. The first line is operating at a higher efficiency but output on the second line will be no more than 75% because the crew will be primarily new hires. Determine the expected output of this second line.arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,