If a job shop is underutilized, then the input rate for a job shop should be?
A) Equal to the daily output rate
B) Less than the daily output rate
C) More than the daily output rate
D) WIP and input rate are unrelated

Question

Quizplus · Accepted Answer

If a job shop is underutilized, it means that it is capable of producing more output than it currently is. In order to increase output, the input rate (the rate at which jobs enter the shop) must be increased as well. Therefore, the input rate should be more than the daily output rate. A higher input rate will help to keep the shop busy and productive.

If a Job Shop Is Underutilized, Then the Input Rate