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311_Session4_Chen

# 311_Session4_Chen - Session4:MoreonCapacity Management...

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Operations management Session 4:   More on Capacity  Management

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Session 4 Operations Management 2 More on Capacity Management So far, we analyzed the process given the  capacity. How much capacity do we need to meet the  demand?
Session 4 Operations Management 3 Capacity Requirement Example Kristen saw a high demand and would like to  produce 26 dozen cookie (in one dozen order) a  night.  How many ovens and mixers does Kristen need? What are the utilization rates of Kristen and her  roommate?

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Session 4 Operations Management 4 Capacity Requirement Example Total throughput rate = 26 dozen/night = 6.5 dozen/hour Capacity of an oven = 6 dozen/hour Capacity of a mixer = 10 dozen/hour Two ovens and one mixer
Operations Management 5 Capacity Requirement Example Utilization rate of Kristen = 26/(240/8) = 86.7% Utilization rate of Roommate = 26/(240/4) = 43.3% What if Kristen would like to produce 36 dozen  cookie (in one dozen order) a night? Is this  possible? Yes, by

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311_Session4_Chen - Session4:MoreonCapacity Management...

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