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A process currently services an average of 58 customers per day. Observations in recent weeks show that its utilization is about 90​ percent, allowing for just a 10 percent capacity cushion. If demand is expected to be 65 percent of the current level in five years and management wants to have a capacity cushion of just 8 ​percent, what capacity requirement should be​ planned?

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Answer:

41 customers per day

Explanation:

Current demand is 58 customers per day, if in five years the company expects the demand to be 65% of the current level, the demand will be:

[tex]D= 58*0.65\\D=37.7\ customers/d[/tex]

If the desired cushion capacity is just 8%, the demand must correspond to 92% of the total utilization, therefore, the total capacity should be:

[tex]C=\frac{37.7}{0.92} = 41 \ customers/d[/tex]

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