The annual capacity of a machine is 12,000 hours, with the balance being taken for routine maintenance. It takes 10 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.

Question

Quizplus · Accepted Answer

Since annual capacity exceeds utilization, at least one unit will have a zero wait time. Average wait time will not be zero, however.

The Annual Capacity of a Machine Is 12,000 Hours, with the Balance