Question

A process currently services an average of 5050 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 7575 percent of the current level in five years and management wants to have a capacity cushion of just 55 ​percent, what capacity requirement should be​ planned?

Answer 1

40 customers per day

Explanation:

Let x be the capacity requirement

Assuming capacity cushion of 5%, the utilization would be

100% - 95% = 5% and services is processed at a rate of 50 customers per day with utilization of 90%.

To calculate capacity requirement in 5 years:

Expected demand rate: 75%

Utilization rate: 90%

`(x)/(U) = D . (S)/(Uc)`

where U = required utilization = 0.95

D = expected demand rate = 0.75

S = current service rate = 50 customers per day

Uc = current utilization = 0.9

`x = D . (S)/(Uc). U = (0.75).((50)/(0.9) ).(0.95)`

x = 39.6 ≈ 40 customers per day