Exam 4: Capacity Planning

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Which one of the following factors usually calls for a larger capacity cushion?

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Discuss the relationship between setup time and utilization.

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A wait-and-see capacity strategy:

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A standard work year is 2080 hours at the Luther Mill and it takes about 2 hours to fill a customer order.The manager at the mill is always concerned about employee idle time,so he aims for a capacity cushion of two percent.Last year saw 15,000 customer orders at the mill and the manager has a new Mercedes in mind as a company car,so he hopes that there is an increase of 10% in customer orders for next year.How many workers will the manager need to have at the mill next year?

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An expansionist capacity strategy minimizes the risks of overexpansion due to overly optimistic demand forecasts.

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Which one of the following factors usually motivates a smaller capacity cushion?

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Kristen made a batch of chocolate chip cookie dough and then had to clean the utensils and mixing bowl before she made a batch of oatmeal raisin cookie dough.The time spent cleaning the bowl and utensils is an example of setup time.

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Which of these phrases best describes the term base case?

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