Selecting the appropriate capacity cushion

Assignment Help Operation Management

Reference no: EM133709481

Questions

1. What factors should be considered when selecting the appropriate capacity cushion? How does the choice of capacity cushion relate to other decisions in operations management? To other functional areas?

2. Capacity planning requires a demand forecast for an extended period of time into the future. What concerns would you have regarding an extended forecast as a capacity planner?

3. Christopher's Cranks uses a machine that can produce 100 cranks per hour. The firm operates 12 hours per day, five days per week. Due to regularly scheduled preventive maintenance, the firm expects the machine to be running during approximately 95% of the available time. Based on experience with other products, the firm expects to achieve an efficiency level for the cranks of 75%. What is the expected weekly output of cranks for this company?

4. An executive conference center has the physical ability to handle 1,500 participants. However, conference management personnel believe that only 1,300 participants can be handled effectively for most events. The last event, although forecasted to have 1,300 participants, resulted in the attendance of only 1080 participants.

1. Calculate the utilization rate of the conference facility.

2. Calculate the efficiency of the conference facility.

Reference no: EM133709481

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