What are the key factors that determine when to add capacity


Assignment: The "Monique Food Processing Company"

Monique Food Processing Company produces light snacks that can be heated in a microwave. The following steps are included in the process:

Steps       Description                                           Capacity (Units/Hour)
1              Prepare food                                           200
2              Measure and place in plastic pouch        175
3              Prepare cardboard box                           200
4              Insert pouch into box                             300
5              Shrink-wrap box                                     200

1. What is the system capacity, and which is the bottleneck department?
2. How much slack (unused capacity) is available in other departments?
3. How much system capacity can be gained by adding capacity to the bottleneck?
4. What are the key factors that determine when to add capacity?
5. Why would an organization want to reduce its capacity?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Operation Management: What are the key factors that determine when to add capacity
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