Question

I need someone to help me with Operation Management, Pleaseeeee?
A process currently services an average of 43 customers per day. Observations in recent weeks show that its utilization is about 90 percent, allowing for just a 10 percent capacity cushion. If demand is expected to be 80 percent of the current level in five years and management wants to have a capacity cushion of just 7 percent, what capacity requirement should be planned?

I will appreciate.

Thanks in advance.

Answer 1

I have never taken a management program before, but I will try to help you solve this anyways, as it just seems like a really simple percentage problem.

Figure out total amount of customers to cause 100% utilization
43/x = 0.90
43/0.90 = x
x = 48
48 = the total number of customers for max capacity


"If demand is expected to be 80 percent of the current level in five years"
What is 80% of 43
0.8*43 = 34.4 people using the service

I assume a capacity cushion is just a fancy way to say amount of people extra people that can use the service before reaching the cap.

If you know how many people who are going to use the service in 5 years and you know they want a cap of 7%

How do you think you can adjust this cap?

Answer 2

Wow I just gave you the answer oops

Answer 3

forgive my grammar my brain is super tired

Answer 4

capacity cushion I assume is,

capacity cushion = 100% - Percentage Utilized Regularly

Answer 5

please correct me if I'm wrong though

Answer 6

haha my assumption was correct

http://toolkit.smallbiz.nsw.gov.au/part/13/67/284

Answer 7

but yeah do you follow my thinking in terms of the solution?

Answer 8

Lol!! Wooww I can see that you are tired... Thanks for trying... But not sure I am also trying to figure this out.. Let me revised it... Hold on.. :)

Answer 9

Trying? I can solve this easy

Answer 10

jeje!! But I did it myself and is wrong.. the right they said is 37 Customer per day.. :(

Answer 11

That is what I got :)

Answer 12

Do you know the formula for percentage?

Number of Customers/Total Customer Cap = Percentage of utilization

Answer 13

Ok, Explain then!!! :-))

Answer 14

Yep!!

Answer 15

Key line,

"If demand is expected to be 80 percent of the current level in five years"

I told you what 80% of the current service utilization is, it is 34.4 (I hope you understand how I got this!)



capacity cushion % = 100% - Percentage Utilized Regularly

So you know,

capacity cushion % = 7%

Plug it into the formula above

Now you know the percent utilized regularly. From there you should be able to use the formula for percentage to solve the problem


7%

Answer 16

Remember percentages are just used for show, when you are doing math with percentages you need to convert them to decimals (making them no longer percentages).

Percentages are just used because people like whole numbers

Answer 17

This problem is pretty much asking you what cap you need to use to get 7% service not utilized regularly

Answer 18

Ohhh, I see what you mean!!

Answer 19

so you know how to come to the solution?

Answer 20

I am practicing... Give me one moment!!

Answer 21

no rush, well a bit of a rush because I have to go soon ha but yeah

Answer 22

Jejeje!! I keep getting 31.99

Answer 23

can you show me your math?

Answer 24

Awww... I know you are tired.. Go head. And rest. Thanks so much for your help..

Answer 25

Ohh!!

Answer 26

that doesnt make sense because the cap is less than the normal service utilization

(34.4/31.99)*100 = 107%

Answer 27

7%=100%-34.4

Answer 28

I'm not tired tired, I just finished writing my exams so my brain is all hazy haha

Answer 29

noooooo

Answer 30

think about what you are doing

Answer 31

Ok..

Answer 32

This is what I am doing.

Answer 33

check your equality

is

100%-34.4
the same as
7%

Answer 34

I am susbtrating 7% out of 100% then * 34.4

Answer 35

Uppsss!!!!!

Answer 36

Do one operation at a time, that way you avoid confusing yourself.

First figure out the percentage utilized, using the formula for capacity cushion

Second with the percentage utilization and the number of people utilizing the service to figure out the cap

Answer 37

Also think about what each variable is, I recommend writing them all down, with the formulas you are going to use.

Then it is just simple algebra and plug and chug

Answer 38

Ok.. I will write it down in a clean paper.. But I am no concentrating right now.. My brain also is burning... because I am finish an essay of 5 pages..

Answer 39

I will keep in contact with you.. Thanks again!!

Answer 40

If you need anymore help with this I dont mind going over the math with you :)

Answer 41

It because I have to submit this HW tonight and I got it wrong anyway.. I am going to finish the rest later on.

Answer 42

Remember to divide percentages by 100 before working with them,

so just say I wanted to find 80% of 30

I would first divide 80% by 100

80%/100 = 0.8
Notice it is not a percentage anymore because it is no longer out of a 100

Now

0.8*30 = 24

24 if 80% of 30

Sorry, I just saw you weren't converting your percentages so I felt it worth going over this with you

Answer 43

that if should be an is

Answer 44

capacity cushion % = 100% - Percentage Utilized Regularly

7% = 100% - x
=
7% - 7% + x = 100% - x + x - 7%
=
x = 100% - 7%

x = Percentage Utilized Regularly

Answer 45

Thank you!! yes I am clear with the percentage.. I just don't know where to put the 7% and 100% = 34.4

Answer 46

34.4 = Number of People regularly utilizing the service

Remember a Percentage is just

(Partial Number/Total Number)*100 = Percentage out of Total Number

Answer 47

34.4 is the number of people using the service all the time, the total number is your service cap

Answer 48

so you know the partial number of people using the service, you know the percentage of utilization, you need the total number of people that can use the service

Answer 49

use the formula I just gave you and simple algebra any you will arrive at the number you are looking for :)

Answer 50

UUUhhhhhhh!!!! duuuuhhhhh!! I got it noowww!!!

Answer 51

Good :) I didnt want to leave you until you understood how to come to the solution :)

Answer 52

jeejeje! Thanks again.. I really appreciate... I told you that I am not concentrated.. jeje

Answer 53

yeah I'm sure you would have gotten it eventually, its not a difficult question

good luck on your assignment

Answer 54

Thanks!!! Have a good weekend!! ;)