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Capacity Management problem: Planning for future

A process currently services an average of 50 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 75 percent of the current level in five years and management wants to have a capacity cushion of just 5 percent, what capacity requirement should be planned?

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This posting contains solution to following capacity planning problem.

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