Question

A process currently services an average of 50 custom-ers 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 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?

Answer 1

Answer:

40 customers

Explanation:

Expected Demand Rate*current service rate/current utilization=capacity requirement/required utilization

.75*(50/90)=x/.95

x=39.58

x=40 customers