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Utilization and Capacity Planning

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The solution contains answers to 4 multiple choice questions on Utilization and Planning in a manufacturing plant and a lumber mill. For example:

1. A manufacturing plant is capable of producing 10 tons of product per day when run three shifts with no breakdowns and plenty of raw materials. Over the past week, the plant has produced an average of 7.3 tons per day because the third shift has devoted much of their time to preventive maintenance. What is the utilization of the plant?
a. 10 tons/day
b. 7.3 tons/day
c. 137%
d. 73%

Answer is:

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https://brainmass.com/business/business-management/utilization-capacity-planning-328671

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Utilization is calculated as a percentage where as capacity is an actual number per unit.

1. A manufacturing plant is capable of producing 10 tons of product per day when run three shifts with no breakdowns and plenty of raw materials. Over the past week, the plant has produced an average of 7.3 tons per day because the third shift has devoted much of their time to preventive maintenance. What is the utilization of the plant?
a. 10 tons/day
b. 7.3 tons/day
c. 137%
d. 73%
Answer is: d (73%)
Utilization of the plant is how much it was used. 7.3 ...

Solution Summary

This solution contains multiple choice questions and answers to Utilization and Capacity Planning.

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