311_session_4_more_on_capacity

311_session_4_more_on_capacity - More on Capacity...

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More on Capacity Management BUAD311 Operations Management Session 4 1
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2 More on Capacity Management So far, we analyzed the process given the capacity. How much capacity do we need to meet the demand?
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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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4 Capacity Requirement Total Throughput Rate = 26 dozen/night = 6.5 dozen/hour Capacity of an oven = 24 dozen/night =6 dozen/hour Capacity of a mixer = 40 dozen/night =10 dozen/hour Two ovens and one mixer
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Capacity Requirement 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? Note Kristen’s capacity is…. Yes, by
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This note was uploaded on 02/15/2011 for the course BUAD 311 at USC.

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311_session_4_more_on_capacity - More on Capacity...

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