Question

A process currently services an average of 5050 customers per day. Observations in recent weeks show that its utilization is about 90​ percent, allowing for just a 10 percent capacity cushion. If demand is expected to be 7575 percent of the current level in five years and management wants to have a capacity cushion of just 55 ​percent, what capacity requirement should be​ planned?

Answer 1

Answer:

40 customers per day

Step-by-step explanation:

Let x be the capacity requirement

Assuming capacity cushion of 5%, the utilization would be

100% - 95% = 5% and services is processed at a rate of 50 customers per day with utilization of 90%.

To calculate capacity requirement in 5 years:

Expected demand rate: 75%

Utilization rate: 90%

$\frac{x}{U} = D . \frac{S}{Uc}$

where U = required utilization = 0.95

          D = expected demand rate = 0.75

          S = current service rate = 50 customers per day

         Uc = current utilization = 0.9

$x = D . \frac{S}{Uc}. U = (0.75).(\frac{50}{0.9} ).(0.95)$

x = 39.6 ≈ 40 customers per day