Managing Supply Chain and Operations 1st Edition by Thomas Foster ,Scott Sampson,Cynthia Wallin,Scott Webb

Exercise 13

A process is designed to produce 2000 units per hour. The process has a scrap rate of 2% and an 8% inherent inefficiency. Assuming that the actual output of the process is 1750 units per hour, what is the process design capacity, available capacity, actual capacity, capacity utilization, efficiency, and output gap for this process?