QUESTION 3 (20 MARKS)

3.1 Bread Ahead Bakery has a plant processing Deluxe breakfast rolls and wants to better understand its capability. Last week the facility produced 148,000 rolls. The effective capacity is 175,000 rolls. The production line operates 7 days per week, with three 8 hour shifts per day. The line was designed to process the nut filled cinnamon flavoured Deluxe roll at a rate of 1,200 per hour. Determine the design capacity, utilization and efficiency for this plant when producing the Deluxe roll. (10 marks)

3.2 The same bakery has decided to increase its facilities by adding one additional process line. The firm will have two process lines, each working 7 days a week, 3 shifts per day, 8 hours per shift with an effective capacity of 300,000 rolls. This addition however will reduce overall system efficiency to 85%. Compute the expected production with this new effective capacity and determine utilisation. (10 marks)