What is capacity planning?

Question 2. Relate the three levels of priority planning to capacity planning. Describe each level in terms of the detail and the time horizons used.

Problem 1

A firm wishes to determine the efficiency and utilization of a work center composed of 5 machines each working 16 hours per day for 5 days a week. A study undertaken by the materials management department found that over the past 50 weeks the work center was actually working for 16,000 hours, and work performed was 15,200 standard hours. Calculate the utilization, efficiency, and demonstrated weekly capacity.

Problem 2

Back schedule the following shop order. All times are given in days. Move time between operations is 1 day, and wait time is 1 day. Due date is day 200. Assume orders start at the beginn

Operation Number	Work Center	Operation Time (days)	Queue Time (days)	Arrival Date (a.m.)	Finish Date (p.m.)
10	110	3	2
20	120	5	3
30	130	3	2
	Stores			200

ing of a day and finish at the end of the day.