What will be the maximum daily capacity of urbanstems

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Reference no: EM132227081

For Valentine’s Day in 2019, UrbanStems plans to operate 3 distribution centers (warehouses) in the Washington DC area. Each warehouse will operate non-stop for 20 hours on that day. UrbanStems plans to hire employees to cover 4 different shifts at each warehouse. Each shift is 5 hours long. UrbanStems will have enough supply and staff members to fulfill 180 orders per hour at each warehouse.

i. What will be the maximum daily capacity of UrbanStems on Valentine’s Day in 2019?

ii. Suppose the company receives 9000 orders for the Valentine’s Day. What will be the resulting design capacity utilization?

iii. Suppose the workers on the fourth shift will be on-call, i.e., will only work if the demand exceeds a certain level. If the number of orders falls below 7500, UrbanStems will not schedule the fourth shift. What will be the effective capacity utilization if the company receives 7500 orders and operates only 3 shifts at each warehouse?

Reference no: EM132227081

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