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19 November, 18:48

A process currently services an average of 50 custom-ers 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 75 percent of the current level in five years and management wants to have a capacity cushion of just 5 percent, what capacity requirement should be planned?

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  1. 19 November, 22:03
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    40 customers

    Explanation:

    Expected Demand Rate*current service rate/current utilization=capacity requirement/required utilization

    .75 * (50/90) = x/.95

    x=39.58

    x=40 customers
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