Professional Documents
Culture Documents
STRATEGIC CAPACITY
PLANNING FOR PRODUCTS
AND SERVICES
SAMPLE PROBLEM ON MEASURES OF
SYSTEM EFFECTIVENESS
In a job shop, effective capacity is only 50 percent
of design capacity, and actual output is 80 percent
of effective output. What design capacity would be
needed to achieve an actual output of eight jobs
per week?
Given:
Effectivecapacity = 0.50*Design capacity
Actual output = 0.80*Effective capacity
80 101
80 66
Plan A
60 Plan B
40 54 Plan C
20
20
0
0 120 180
Daytime Calls, in minutes per week
c) If the agent will use the service for daytime calls, over what range of call minutes will each plan
be optimal?
From the graph,
We can see that Plan A is always cheaper than Plan B
There is a point where Plan C is better than Plan B
There is also a point where Plan C is better than Plan A
Total Charge for A = Total Charge for C
20 + 0.45x = 20 + 80
X = 177.78 min 178 minutes
Below 178 minutes, Plan A is cheaper. Above 178 minutes, Plan C is cheaper.
Total Charge for B = Total Charge for C
20 + 0.55x = 20 + 80
X 145 minutes; choosing between Plan B and Plan C, Plan B is cheaper than Plan C if
consumption is below 145 minutes. Beyond 145 minutes, Plan C is cheaper.
However, Plan B at 145 minutes is more expensive than Plan A.
The optimal choice is Plan A if consumption is from 0 to 178 minutes.
d) Suppose that the agent expects both daytime and
evening calls. At what point (i.e., percentage of call
minutes for daytime calls) would she be indifferent
between plans A and B?