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Why would an organization want to reduce its capacity

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Monique Food Processing Company and Capacity

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

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

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

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

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

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: EM132087084

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