What is the system capacity


Response to the following :

Read Problem 6: The "Monique Food Processing Company" in Chapter- Capacity Decisions .

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

What is the system capacity, and which is the bottleneck department?

How much slack (unused capacity) is available in other departments?

How much system capacity can be gained by adding capacity to the bottleneck?

What are the key factors that determine when to add capacity?

Why would an organization want to reduce its capacity?

Make and include calculations. Answer questions "a" through "e." Your response should be 200 to 250 words.

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Operation Management: What is the system capacity
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