Question

A process currently services an average of 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 percent of the current level in five years and management wants to have a capacity cushion of just ​percent, what capacity requirement should be​ planned? The needed capacity requirement is nothing customers per day. ​(Enter your response rounded up to the next whole number.​)

Answer 1

Answer: 40 customers per day

Explanation:

In five years, the demand will be 75% of current demand which is 50 customers per day:

= 50 * 75%

= 38 customers

A 5% cushion would require a utilization rate of 95%. Capacity requirement required is therefore:

= 38 customers / 95%

= 40 customers per day