A process currently services an average of 55 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 85 percent of the current level in five years and management wants to have a capacity cushion of just 5 percent, what capacity requirement should be planned?Part 2The needed capacity requirement is enter your response here customers per day. (Enter your response rounded up to the next whole number.) Partial CrecA process currently services an average of 55 customers per day. Observations in recent weeks show that its utilization is about 90 percent, allowing for just a 10percent capacity cushion. If demand is expected to be 85 percent of the current level in five years and management wants to have a capacity cushion of just 5percent, what capacity requirement should be planned?The needed capacity requirement iscustomers per day. (Enter your response rounded up to the next whole number.)Plan.

Answered: A process currently services an average…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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A process currently services an average of 55 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 85 percent of the current level in five years and management wants to have a capacity cushion of just 5 percent, what capacity requirement should be planned? Part 2 The needed capacity requirement is enter your response here customers per day. (Enter your response rounded up to the next whole number.)

Partial Crec
A process currently services an average of 55 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 85 percent of the current level in five years and management wants to have a capacity cushion of just 5
percent, what capacity requirement should be planned?
The needed capacity requirement is
customers per day. (Enter your response rounded up to the next whole number.)
Plan.

Expert Solution

Step 1

Given-

$E x p e c t e d D e m a n d R a t e = 85 % = 0.85 C u r r e n t s e r v i c e r a t e = 55 c u s t o m e r s / d a y C u r r e n t U t i l i z a t i o n = 90 % = 0.90 U t i l i z a t i o n r e q u i r e d = (100 % - C a p a c i t y c u s h i o n) = (100 - 5) = 95 % = 0.95$