Question: Question 3 The decisions taken by operations managers in devising their capacity plans will affect several different aspects of performance (e.g., costs, revenues, working capital,

Question 3 The decisions taken by operations managers in devising their capacity plans will affect several different aspects of performance (e.g., costs, revenues, working capital, quality or services, speed of response to customer demand, dependability of supply, flexibility). Consider a specific operation (provided in class or your group assignment) and discuss the following questions. a) Discuss its capacity management strategy (e.g., the nature of product or service demand, and planning and controlling capacity.) Example: The maximum capacity of the restaurant implied by the question is the number of customers on the number of tables. For example, suppose there was space for 20 tables. It assumes that the average number of customers on a table is 4. 20 tables x4 customers =80 customers To calculate the maximum capacity, we should know customers have the average time spent at the restaurant and the restaurant's open hours per day. For example, the average time spent at the restaurant could be 2.1 hours, and the restaurant could be open for 8.5 hours in the summer. This would suggest that the restaurant can go through four cycles of usage (8.5/2.1=4.04) during the day, in which case the maximum capacity is 320 (80 customers x 4)
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