QUESTION 4

a. Why is the capacity decision important?

b. Describe six tactics for matching capacity to demand.

c. The staff training center at a large regional telecommunications company provides training sessions in Microsoft office to all employees. Assume that the capacity of this training system was designed to be 2000 employees per year. Since the training center was first put in use, the program has become more complex, so that 1500 now represents the most employees that can be trained per year. In the past year, 1350 employees were trained.

i. Calculate the efficiency of this system.

ii. Calculate the utilization of this system.

d. A factory produces 2000 units a month. If design capacity is 3000 and efficiency is 80%.

i. Calculate the utilization rate. ii. ii.Calculate the effective capacity.