Business homework

Capacity concerns at Ice Delights:

1.Calculate the CapicityUtilisation for Ice Delights?

12000:15000*100%=80%

2.Are they currently operating below or above full capacity?

They are below capacity because his production levels just high enough to fulfil most of orders.

3.What implications are there for Ice Delights of operating at this level?

They have outdated machinery which make waste production times for waiting and repairing.It also makes him pay more fee to fix them.
Many of Bill's staff have been working for many years and good at their jobs.It makes high productivity .However, most of them have young families.They must use their times for their families more than working.For example, they have new baby.They will absent to take the baby.It makes his production have problems.He doesn't have enough time to have new worker and his capacity is below.Maybe the new worker isn't suit for this job.He has to spend time teaching them how to do their working.Another thing, his business is small and they have young famililies.They must be worried about their future,so they will give up their jobs if they find out another good pay ones.The same thing will be happened...Wasting times,lower capacity,...

4.Evaluate the options available to Bill when responding to the requests of the Directors?

I think to improve efficiency and lower cost per unit for tubs of ice cream they produce,there are many things he can do:
First of all, he can use economic of scale.It is the advantage of producting on large scale, in the form of lower long-run average cost.using it can reducce his products cost in a long times.
Second, he can buy a new machinery.In the short time, it will make his fiexd cost product raises ,but a long time it helps increasing productivity and reduce his cost.New machinery also help improving quality of product and saving raw material.He has a smalll business so buying new machinery will be a big problem for his cashflow....
Third,he should sign contact to his staffs to decrease their giving up and reduce a effect into capacity utilisation.
MORE MORE ,BUT I feel sleepy.Last night I didn't sleep...=....=