The annual capacity of a machine is 3,500 hours, with the balance being taken for routine maintenance. It takes 50 hours to process one job (each job = 1 batch) ,. Altogether, there are seven employees who operate the machine at different times. Orders for the first six months of the year, which are typical, have averaged 50 jobs per month. The company expects 300 orders over the next six months. Which of the following is true?
A) Expected capacity utilization = 700 batches.
B) Expected capacity utilization = 650 batches.
C) Expected capacity utilization = 600 batches.
D) Average waiting time is not relevant when expected capacity utilization is less than capacity.
E) Waiting time for at least one order will be nil.
Correct Answer:
Verified
Q92: Two common operational measures of time are
Q95: Customer-response time is a measure of how
Q98: Manufacturing lead times can affect costs but
Q100: How much will appraisal costs change assuming
Q104: Several companies have adopted manufacturing lead time
Q106: The demand for Ballard's Glass Company's products
Q110: The demand for Ballard's Glass Company's products
Q114: The average waiting time is the average
Q118: Manufacturing lead time is the sum of
Q120: On-time performance is
A)the time it takes distribution
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents