Capacity plan
Organisation: Northfield Foods Ltd
Covers: Production line 2 (ovens, packing and night shift staff)
Period: April 2030 to March 2031
Owner: Hamza Idrissi, Operations manager
Unit: Loaves per week
1. Current capacity and use
Capacity 60,000 loaves a week. Average use 48,000 (80 percent). Peak weeks reach 58,000.
2. Expected demand
Two new supermarket contracts start in July, adding about 12,000 a week. Christmas peak is 25 percent above normal.
3. Forecast
| Period | Expected demand |
|---|---|
| Q2 | 50,000 |
| Q3 | 62,000 |
| Q4 | 72,000 |
| Q1 | 58,000 |
4. Gaps
From July, demand is above capacity. At peak the gap is about 12,000 a week.
5. Options
| Option | Cost | Effect |
|---|---|---|
| Add a night shift | cost 140,000 a year | closes 8,000 of the gap |
| Buy a third oven | cost 320,000 once | closes the whole gap from 2031 |
| Outsource packing at peaks | cost per week varies | closes 4,000 |
6. Recommendation
Add a night shift in July and decide on the oven in October
7. Risks and assumptions
Contracts may start later. Hiring may take 8 weeks. Ingredient supply is assumed stable.
8. When to review
Review if use stays above 90 percent for 3 weeks, or a contract changes.
9. Decision needed from
Maria Costa, Managing director