A factory with a sustainable output of 5,000 parts per day has averaged 4,600 parts per day for the last month. What is the factory's capacity utilization over this period (given as a percentage)?
A) 108.7%
B) 400%
C) 92%
D) Cannot be determined without a given design capacity

Question

Quizplus · Accepted Answer

Capacity utilization = Actual output / Design capacity

Since the design capacity is not given, we cannot calculate the capacity utilization precisely. However, we can use the sustainable output (which is likely close to the design capacity) as an estimate.

Capacity utilization = Actual output / Sustainable output

Capacity utilization = 4,600 / 5,000

Capacity utilization = 0.92 or 92%

Therefore, the best choice is C.

A Factory with a Sustainable Output of 5,000 Parts Per