What are the key factors that determine when to add capacity


Homework: Process Selection and Monique Food Processing Company and Capacity

Part A: Process Selection: Product and Design Capacity

How is process selection related to product design and capacity determination? Your initial post should be 200 words.

Part B: Monique Food Processing Company and Capacity

Read Problem 6: The "Monique Food Processing Company" in Chapter 8 of your text. 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

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

Format your homework according to the following formatting requirements:

(1) The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.

(2) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.

(3) Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.

Required Resources

Text

Vonderembse, M. A., & White, G. P. (2013). Operations management [Electronic version].

o Chapter 7: Facility Location and Process Selection
o Chapter 8: Capacity Decisions

Multimedia

July, E. (Producer) & Rodrigo, J. M. (Director). (2003). Business is blooming: The international floral industry [Video file]. Retrieved from the Films On Demand database.

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