What are the key factors that determine when to add capacity?

Read Problem 6: The “Monique Food Processing Company” in Chapter 8 of your text.

Monique Food Processing Company produces light snacks that can be heated in a microwave. The following steps are included in the process:

Steps Description Capacity (Units/Hour)
1 Prepare food 200
2 Measure and place in plastic pouch 175
3 Prepare cardboard box 200
4 Insert pouch into box 300
5 Shrink-wrap box 200


  • What is the system capacity, and which is the bottleneck department?
  • How much slack (unused capacity) is available in other departments?
  • How much system capacity can be gained by adding capacity to the bottleneck?
  • What are the key factors that determine when to add capacity?
  • Why would an organization want to reduce its capacity?

Make and include calculations.  Answer questions a – e. Your initial post should be 400 words.





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