At a high level, a bakery follows a two-step process: Step 1 is Bread Baking which requires a bread-making machine Step 2 is Packaging which requires a packing machine. A bread-making machine produces one batch per hour. One batch consists of 100 loaves of bread. The packaging machine can package one loaf every 20 seconds. Presently the bakery has one bread-making machine and one packaging machine.

What would be the impact on capacity and utilization if the bakery purchased a second bread-making machine (and still used the single packaging machine)? Clearly show your calculations.

What is the capacity of the old and new process?

What is the utilization of the old and new process?

Based on your answers to the previous parts of the question, would you recommend a purchase of a second bread-making machine?