For one service or product processed at one operation with a one year time period, the capacity requirement, M, is
Capacity requirement = Processing hours required for year's demand/ Hours available from a single capacity unit (such as an employee or machine) per year, after deducting desired cushion
M= Dp/ N[1 - (C/100)]
Where:
D =demand forecast for the year (number of customers serviced or units of product)
p =processing time (in hours per customer served or unit produced)
N =total number of hours per year during which the ...