Determining the effective capacity


Assignment:

Material delays have routinely limited production of household sinks to 400 units per day. If the plant efficiency is 80%, what is the effective capacity? The effective capacity and efficiency for the next quarter at MMU Mfg. in Waco, Texas, for each of three departments are shown:

DEPARTMENT          EFFECTIVE CAPACITY  RECENT EFFICIENCY

 

Design                       93,600                                           95

 

Fabrication                 156,000                                        1.03

 

Finishing                     62,400                                        1.05

 

Compute the expected production for next quarter for each department.

Provide complete and step by step solution for the question and show calculations and use formulas.

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Operation Research: Determining the effective capacity
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