How much system capacity can be gained

Assignment Help Accounting Basics

Reference no: EM131958819

Question: 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.

Chapter: Capacity Decisions

Reference no: EM131958819

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