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a.
Interpretation:Useful capacity measures are to be defined for Brewery.
Concept Introduction:
Capacity Measures:
The unit of capacity that helps to find volume or capacity of a particular element, product, area or others is known as capacity measures. For example, we know that capacity measures for the items which are dry in nature are different as compared to the liquid elements. The assessment for these units basically depends on mass, length and capacity. The units are measurable in imperial ways.
b.
Interpretation:Useful capacity measures are to be defined for an Airline.
Concept Introduction:
Capacity Measures:
The unit of capacity that helps to find volume or capacity of a particular element, product, area or others is known as capacity measures. For example, we know that capacity measures for the items which are dry in nature are different as compared to the liquid elements. The assessment for these units basically depends on mass, length and capacity. The units are measurable in imperial ways.
c.
Interpretation:Useful capacity measures are to be defined for Movie Theatre.
Concept Introduction:
Capacity Measures:
The unit of capacity that helps to find volume or capacity of a particular element, product, area or others is known as capacity measures. For example, we know that capacity measures for the items which are dry in nature are different as compared to the liquid elements. The assessment for these units basically depends on mass, length and capacity. The units are measurable in imperial ways.
d.
Interpretation:Useful capacity measures are to be defined for a Pizza restaurant.
Concept Introduction:
Capacity Measures:
The unit of capacity that helps to find volume or capacity of a particular element, product, area or others is known as capacity measures. For example, we know that capacity measures for the items which are dry in nature are different as compared to the liquid elements. The assessment for these units basically depends on mass, length and capacity. The units are measurable in imperial ways.
e.
Interpretation:Useful capacity measure is to be defined for an Amusement park.
Concept Introduction:
Capacity Measures:
The unit of capacity that helps to find volume or capacity of a particular element, product, area or others is known as capacity measures. For example, we know that capacity measures for the items which are dry in nature are different as compared to the liquid elements. The assessment for these units basically depends on mass, length and capacity. The units are measurable in imperial ways.
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- Explain and expand these importance of capacity planning. 1. Capacity decisions have a real impact on the ability of the organization to meet future demands for products and services. 2. Capacity decisions affect operating costs. 3. Capacity is usually a major determinant of initial cost. Typically, the greater the capacity of a productive unit, the greater its cost.arrow_forwardExplain how the capacity analysis reacts when several processes are running simultaneously.arrow_forwardHow do the firms apply Expected Monetary Value (EMV) to Capacity Decisions?arrow_forward
- What volume (units) of output would the two alternatives yield the same profit? "Sroufe Manufacturing intends to increase capacityby overcoming a bottleneck operation by adding new equipment.Two vendors have presented proposals. The fixed costs for proposalA are $50,000, and for proposal B, $70,000. The va riablecost for A is $12.00, and fo r B, $10.00. The revenue generated byeach unit is $20.00.a) What is the break-even point in units for proposal A?b) What is the break-even point in units for proposal B?"arrow_forwardAn average of 50 customers a day are currently served through a method. Observations made in recent weeks reveal that its use is approximately 90 percent and allows a buffer of just 10 percent. If demand is projected in five years to be 75% of current levels and management needs a capacity buffer ofjust 5%, what capacity requirement should be planned?arrow_forwardBaby World Inc. has 31 operators and work 7 hours a day, 5 days a week. They specialize in making organic cotton baby onesies. The standard minute value to finish one onesie = 10 minutes. Assume that their actual capacity = max capacity. They just received an order for 6300 of these onesies. How many days will it take to complete this order? Round your answer to the nearest whole number, but do not round until your final answer. Group of answer choices 5 days 6 days 7 days 4 daysarrow_forward
- A copy center in an office building prepares bound reports for two clients. The center makes multiple copies (thelot size) of each report. The processing time to run, collate, and bind each copy depends on, among other fac-tors, the number of pages. The center operates 250 days per year, with one 8-hour shift. Management believesthat a capacity cushion of 15 percent (beyond the allowance built into time standards) is best. It currently hasthree copy machines. Based on the following table of information, determine how many machines are neededat the copy center Item Client X Client YAnnual demand forecast (copies) 2,000 6,000Standard processing time (hour/copy) 0.5 0.7Average lot size (copies per report) 20 30Standard setup time (hours) 0.25 0.40arrow_forwardWhich of the following is a long-term capacity expansion option: Select one: a. Rental or lease of equipment b. Small capacity increases that lag average demand c. Advertising and promotion d. Sharing equipment e. Adding peripheral goods and/or servicesarrow_forwardExplain and expand these importance of capacity planning. 1. Capacity decisions often involve long-term commitment of resources and the fact that, once they are implemented, those decision may be difficult or impossible to modify without incurring major costs. 2. Capacity decisions can affect competitiveness. 3. Capacity affects the ease of management.arrow_forward
- Explain the Systematic Approach to Capacity Decisions in the Long Run ?arrow_forwardHow can system approach to capacity planning be useful?arrow_forward1. What factors should be considered when selecting the appropriate capacity cushion? Howdoes the choice of capacity cushion relate to other decisions in operations management?To other functional areas? 2. Capacity planning requires a demand forecast for an extended period of time into thefuture. What concerns would you have regarding an extended forecast as a capacityplanner?arrow_forward
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