Question

A process currently services an average of 58 customers per day. Observations in recent weeks show that its utilization is about 90​ percent, allowing for just a 10 percent capacity cushion. If demand is expected to be 65 percent of the current level in five years and management wants to have a capacity cushion of just 8 ​percent, what capacity requirement should be​ planned?

Answer 1

41 customers per day

Step-by-step explanation:

Current demand is 58 customers per day, if in five years the company expects the demand to be 65% of the current level, the demand will be:

`D= 58*0.65\\D=37.7\ customers/d`

If the desired cushion capacity is just 8%, the demand must correspond to 92% of the total utilization, therefore, the total capacity should be:

`C=(37.7)/(0.92) = 41 \ customers/d`