Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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An airline company must plan its fleet capacity and its long-
term
average number of customers per day is 70, which represents a 65 percent utilization rate of the equipment assigned to the
flight segment. If demand is expected to increase to 84 cus-
tomers for this flight segment in three years, what capacity
requirement should be planned? Assume that management
deems that a capacity cushion of 25 percent is appropriate
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- Given the following four capacity alternatives, find the best production method for every production volume. Method Fixed Cost ($) Variable Cost ($/unit) A 200 5 100 10 C 150 4 D 250 2.arrow_forwardWhich capacity strategy would be appropriate for Fitness Plus? Justifyyour answerarrow_forwardA process currently services an average of 65 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 3 percent, what capacity requirement should be planned? customers per day. (Enter your response rounded up to the next whole number.) The needed capacity requirement is an example Get more help. MacBook Pro You Yea 1.1 Clear all Check answerarrow_forward
- Explain the figures and mention the disadvantages and advantages of the following figures based on the operation management perspective: leading demand with an incremental expansion, leading demand with one-step expansion, lagging demand with incremental expansion, attempts to have an average capacity that straddles demand with incremental expansionarrow_forwardBaker Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years. 5 2 3 4 123 125 127 126 Year Forecast Demand Currently the manufacturer has eight machines that operate on a two-shift (eight hours each) basis. Twenty days per year are available for scheduled maintenance of equipment. Assume there are 250 workdays in a year. Each manufactured good takes 20 minutes to produce. 1 106 a. What is the effective capacity of the factory? Round your answer down to the nearest whole number and use this answer in subsequent computations. Year Additional machines needed units/year b. Given the five-year forecast, how much extra capacity is needed each year? Round your answers to the nearest whole number. Year 1 2 3 Extra capacity needed (units) c. Does the firm need to buy more machines? If so, how many? When? If your answer is zero, enter "0". Round your answers up to the nearest whole number. 1 2 3 4 5 5arrow_forwardWhat is CAPACITY REQUIREMENTS FORECASTING?arrow_forward
- The exclusive Swink Golf Driving Range has had astandard price of $15 per hour. The facility has 36 golfing stations,with average usage of 50%, 10 hours a day, 7 days a week. MorganSwink, the owner, would like to enhance revenue. He proposes newpricing at $10 per hour on weekdays and $20 per hour on weekends.He estimates that weekday usage will increase to 60% and weekendusage will remain at 500/o, even with the price increase. Variable costis a consistent $3 per hour. Which strategy is better?arrow_forward1. What capacity decisions should Delta make regarding facilities, equipment, workforce, products/services, working hours, or other resources required to run business processes?arrow_forwardAn airline company must plan its fleet capacity and its long-term schedule of aircraft usage. For one flight segment, the average number of customers per day is 70, which represents a 65 percent utilization rate of the equipment assigned to the flight segment. If demand is expected to increase to 91 customers for this flight segment in three years, what capacity requirement should be planned? Assume that management deems that a capacity cushion of 35 percent is appropriate. The needed capacity requirement is customers per day. (Enter your response rounded up to the next whole number.)arrow_forward
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