What are the key factors that determine when to add capacity

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Reference no: EM131402753

Problem 1: The "Monique Food Processing Company"

 

Monique Food Processing Company produces light snacks that can be heated in a microwave. The following steps are included in the process:

 

Steps

Description

Capacity (Units/Hour)

1

Prepare food

200

2

Measure and place in plastic pouch

175

3

Prepare cardboard box

200

4

Insert pouch into box

300

5

Shrink-wrap box

200

 

a. What is the system capacity, and which is the bottleneck department?

 

b. How much slack (unused capacity) is available in other departments?

 

c. How much system capacity can be gained by adding capacity to the bottleneck?

 

d. What are the key factors that determine when to add capacity?

 

e. Why would an organization want to reduce its capacity?

 

Make and include calculations. Answer questions "a" through "e."

 

Problem 2: How is process selection related to product design and capacity determination? Your initial post should be 200-250 words.

Reference no: EM131402753

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