Question
a. Determine what capacity is required. You will need to estimate the annual sales of dempster's whole wheat bread. Determine the capacity required for each
a. Determine what capacity is required. You will need to estimate the annual sales of dempster's whole wheat bread. Determine the capacity required for each variety and /or size by making an assumption as to what percentage of each variety and size are sold. State the total capacity required to meet the estimate annual sales. We will assume that sales volume will increase at 5% per year for 10 years. Calculate the volume in year 10. This will be the design capacity of the production line. b. Assume your plant will normally operate 5 days per week, 2 shifts per day, and 8 hours per shift. There are approximately 10 statutory holidays each year, and your company policy is to take a 2 week shutdown every summer, so employees are only available to work 48 weeks per year. Assume planned equipment changeovers add up to another 2 weeks per year. Calculate your effective capacity. c. We will assume that the efficiency of the plant is 70 percent. Calculate the Actual Output that you can expect to achieve.
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