Question: Returning to Problem 4, the business now requires a 20 percent capacity cushion. Data from problem 4 A manufacturer of bespoke handmade candles employs 2

Returning to Problem 4, the business now requires a 20 percent capacity cushion.

Data from problem 4

A manufacturer of bespoke handmade candles employs 2 machine operators and 3 packers to process customer orders. This team of 5 works for 6 hours a day for 5 days a week (Monday-Friday). Together, they make 100 candles per hour which are packed in boxes of 10. A machine operator and a packer require approximately 4 minutes to manufacture and 2 minutes to pack each box of candle.

a. What would be the new capacity utilization if the capacity cushion is implemented?

b. How many employees should the business schedule if it wishes to keep the capacity utilization unchanged?

c. Calculate the capacity utilization for machine operator, packer, and cross-trained employees.

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a To calculate the new capacity utilization with a 20 percent capacity cushion you can use the formula New Capacity Utilization Current Capacity Curre... View full answer

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