Type of capacity assumes ideal operating conditions. Concept Introduction : Design capacity represents the theoretical capacity of a system. The design capacity is the maximum output that the system was built to produce. It is the capacity of the system that works under perfect working conditions.

Question

Want to see the full answer?

Answer 1

Question

Chapter 5, Problem 11P

Summary Introduction

Interpretation: Type of capacity assumes ideal operating conditions.

Concept Introduction:

Design capacity represents the theoretical capacity of a system. The design capacity is the maximum output that the system was built to produce. It is the capacity of the system that works under perfect working conditions.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Flow and waiting time through a process are affected by seasonal fluctuation in demand. What does this mean? If a corporation wants to limit the impact of this fluctuation, what steps can it take?

Knott’s Industries manufactures standard and super premium backyard swing sets. Currently it has four identical swing-set-making machines, which are operated 250 days per year and 8 hours each day. A capacity cushion of 20 percent is desired. The following information is also known: Standard Model Super PremiumModel Annual Demand Standard Processing Time Average Lot Size Standard Setup Time per Lot 20,000 7 min 50 30 min 10,000 20 min 30 45 min a. Does Knott’s have sufficient capacity to meet annual demand?b. If Knott’s was able to reduce the setup time for the Super Premium Model from 45 minutes to 30 minutes, would there be enough current capacity to produce 20,000 units of each type of swing set?

Why do waiting lines form at a service facility even though there may be more than enough service capacity to meet normal demand in the long run?