Differences between maximum capacity and effective capacity

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Reference no: EM132290813

1. a. Explain the differences between maximum capacity and effective capacity. b. How would you define the maximum capacity for the front desk of a hotel? What is meant by the effective capacity? Define the difference in these two terms relative to the number of customers that can be checked into the hotel in a given period.

2. Penny’s Pies is a small specialty supplier to a national coffee-house chain. Penny’s makes three types of pies (apple, cherry, and pecan). Penny’s operates 250 days per year with a single eight-hour shift. Capacity is controlled by the number of production lines within the bakery (a line consists of mixing equipment, rolling and cutting equipment, an oven, and packaging equipment). Based on the information provided in the table, determine the number of production lines Penny’s should have. Hint: The total operating time required is the sum of total processing time and total setup time. To calculate the total setup time, you need to first calculate the total number of setups required by dividing demand forecast by lot size. Pie Demand Forecast (pies/year) Processing Time (minutes/pie) Lot Size (# of pies) Setup Time (minutes/setup) Apple 72,000 3 300 10 Cherry 40,000 6 80 15 Pecan 26,000 5 130 30

Reference no: EM132290813

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