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Question 1 Capacity Question (6 marks) Note: Show your detailed calculation steps and round to 2 decimal places MoAng Coffee is a company producing Coffee
Question 1 Capacity Question (6 marks) Note: Show your detailed calculation steps and round to 2 decimal places MoAng Coffee is a company producing Coffee Beans. Since the demand for Coffee Beans is expected to increase in the coming years, the supply chain manager is analyzing the future capacity rients. The company currently has 2 production machines, each capable of producing 15,000 bags of Coffee Beans per year and they currently have 6 employees available. Three employees are needed to opet sach made Based on demand forecast given in the below table, the supply chain manager needs to calculate capacity requirements for the next 2 years as follows 2023 2024 Demand Forecast 25,000 35,000 Capacity Utilization Machine Requirement Labor Requirement 1. Calculate the capacity utilization, machine requirement and labor requirement for 2023 & 2024 (3 marks) 2. Comment on the capacity requirements for 2023 and 2024. (1.5 marks) 3. Do you think that the company needs to increase its capacity (machines and labor) in 2024? If yes, how many additional machines and/or employees are required? (1.5 marks)
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