Question: a. Differentiate between design capacity and capacity utilization. [4 marks] b. Briefly describe three capacity expansion strategies. [6 marks] c. An airline company must plan
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a. Differentiate between design capacity and capacity utilization. [4 marks] b. Briefly describe three capacity expansion strategies. [6 marks] c. An airline company must plan its fleet capacity and long-term schedule of aircraft usage. For one flight segment, the average number of customers per day is 70 , which represents a 65 percentage utilization rate of the equipment assigned to the flight segment. If demand is expected to increase to 84 customers for this flight segment in three years, and management requires a capacity cushion of 25 percent, calculate the following:- i. the planned capacity requirement. [5 marks] ii. the maximum number of customers the flight segment can accommodate.[5 marks] iii. the efficiency rate of the flight segment assuming that the current effective capacity of the flight segment is 93 customers. [5 marks]
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