Question
Capacity Levels Analysis (6 Marks) You have to use the results you had concluded using Exponential Smoothing Approach with an () value you decided to
Capacity Levels Analysis (6 Marks)
You have to use the results you had concluded using Exponential Smoothing
Approach with an () value you decided to use, to plan our next stage with Capacity
Decision Analysis if you know that the production line is designed to operate 10 hours a
day. In addition, across the whole year, there will be no existence for days off per week but
actually the factory of Cook Door at El Obour City will be closed for the last three days of
each month for the year 2022 whose numbers of days will be 360 days.
= 0.4
MAD = 343.96
MSE = 238,976.79
Cook Door has a burger production line called Z-Burgeproduct line. This line was
designed to produce 40 pieces of Z-Burger per Hour. However, the workers at Obour
Factory do not work for the full 10 hours per day and they take four half an hour break
every two& the first hour isspent for setting up the required tools & equipment. In
addition, you as an operations specialist,advised them to lose an hourto spare some
parts of the machine generating the Z-Burger. "For your concern, Obour factory usually
produces 100,000 piecesof Z-Burger peryear" Eng. Hend Sameh Said
Now you have to compute the planned capacity levels as follows:
(a) Designed Capacity level.
(b) Effective capacity level.
(c) Efficiency ratio.
(d) Utilization ratio.
(e) Which indicator are you going to use-Designed or Effective Capacity- to
match with your forecasted sales using Exponential Smoothing in the 1st
stage? Why?
(f) Is it matching your findings in the 1st stage or there is a gap? If you have
a demand matching gap, what kind of changes or actions would be taken
by you to match the forecasted value you got in stage 1 using Exponential
Smoothing Technique?
Note: You can use a series of techniques such as changing working
times (Shifts), adding a new product line or any further actions that
you may consider (regardless of the cost variable).
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