Why would an organization want to reduce its capacity

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Reference no: EM131290258

Post on Processing company

Read Problem 6: The "Monique Food Processing Company" in Chapter 8 of your text.

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

1. What is the system capacity, and which is the bottleneck department?
2. How much slack (unused capacity) is available in other departments?
3. How much system capacity can be gained by adding capacity to the bottleneck?
4. What are the key factors that determine when to add capacity?
5. Why would an organization want to reduce its capacity?

Make and include calculations. Answer questions "a" through "e." Your response should be 200-250 words.

Reference no: EM131290258

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