A bakery sells two different types of loaves of bread, made-from-scratch bread and pre-mixed bread. The made-from-scratch bread require(s) three steps: mixing, baking and packaging. The pre-mixed bread only require(s) two steps: baking and packaging The mixing step has a capacity of 170 loaves per hour. The baking step has a capacity of 280 loaves per hour. The packaging step has a capacity of 275 loaves per hour. The demand for made-from-scratch bread is 278 loaves per hour and the demand for pre-mbed bread is 203 loaves per hour. Instruction: Round to the nearest integer percentago. What is the implied utilization of the bottleneck resourco

Any resource whose capacity is equal to or less than the market demand placed on it. Bottleneck resource is usually identified by the resources that are either slower than it should or have an accumulation of work that they cannot process.

How to calculate the implied utilization of the bottleneck resource?
First, let's start to calculate based on three steps of making bread from-scratch

1. Mixing

Capacity = 170

Demand (made from scratch + demand for pre mixed) = 278

Mixing implied utilization = [tex]\frac{demand}{capacity}*100[/tex]

= [tex]\frac{278}{170} * 100[/tex]

= 163.53%

2. Baking

Capacity = 280

Demand (made from scratch + demand for pre mixed) = 278 + 203 = 481

Baking implied utilization = [tex]\frac{demand}{capacity}*100[/tex]

= [tex]\frac{481}{280} * 100[/tex]

= 171.79%

3. Packaging
Capacity = 275

Demand (made from scratch + demand for pre mixed) = 278 + 203 = 481

Packaging implied utilization = [tex]\frac{demand}{capacity}*100[/tex]

= [tex]\frac{481}{275} * 100[/tex]
= 174.91%

The bottleneck resource is the one with maximum / higher implied utilization. Therefore, the bottleneck is packaging.

Implied utilization of bottleneck resource (packaging) = 175%

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