Determining the capacity utilization rate


A company has a factory that is designed so that it is most effi cient (average unit cost is minimized) when producing 15,000 units of output each month. However, it has an absolute maximum output capability of 17,250 units per month, and can produce as little as 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 10,925 units in October, what is the capacity utilization rate in October for this factory?

Request for Solution File

Ask an Expert for Answer!!
Operation Management: Determining the capacity utilization rate
Reference No:- TGS057360

Expected delivery within 24 Hours