Question

Owners of the restaurant in the prior problem anticipate that in one year their demand will double as long as they can provide good service to their customers. How much will they have to increase their service capacity to stay out of the critical zone?

Short answer

The service will be doubled in the crucial zone.

Step-by-step solution

Service capacity

The number of actual quantities of services that may be generated by a certain facility or work to prepare at the facilityor the feasible, maximum level of service output for a service program is referred to asservice capacity.

They have to increase their service capacity to stay out of the critical zone

To get out of the critical zone, theservice capacitywill be doubled. The critical zone is the area where there is insufficient service to meet demand. When companies expect demand for their products to double, wewould like to understand what we will have to increase service capacity to avoid entering the critical zone.

To find the exact cost we need to multiply service (x) by a couple of times the item's demand would rise. It is rising by two in this scenario. To get out of the crucial zone, the service will be doubled.