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Unformatted text preview: -Normal Distribution CH5 Capacity Planning Product and services Capacity – upper limit, maximum Strategic-future demands-Costs-Initial costs-Long term commitment-Competitiveness Design capacity – Numbers Effective capacity – Realistic, more limits and facts Actual output – Actual numbers Efficiency = actual output . Effective capacity Utilization = Actual Output Design Capacity Optimal rate of output Evaluating Rev FC VC Qbep 1. Purchase $100 $0.00 $60 2. Make it self $100 $150k $40 2500 Qbep = FC . R – VC $150k + 40 Q = 60 Q Q = 7500 If the quantity is less than 7500 buy the products If the quantity is more than 7500 make the products...
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- Monte Carlo method, arrival random service