A factory produces 1000 units a month. If design capacity is 3000 and efficiency is 50% find utilization and effective capacity
What will be an ideal response?
Output = Utilization ? Design Capacity gives 1000 = utilization ? 3000, utilization = 33.33%. Next use output = efficiency ? effective capacity to get 1000 = .5(effective capacity), effective capacity = 2000 units.
Business
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