Product gamma requires a sequence of 5 Work centers.What is the capacity efficiency when the total out output is 2000 units per period? The following is the period production volume for each WC.
WC1: 2500 units, WC2: 2250 units, WC3:3100 units, WC4:2500 units, WC5:2150 units
A) 87.54%
B) 64.51%
C) 93.02%
D) 107.50%

Question

Quizplus · Accepted Answer

Capacity efficiency is calculated by dividing the actual output by the capacity of the bottleneck (the work center with the lowest capacity) and then multiplying by 100 to get a percentage. The bottleneck here is WC5 with 2150 units. So, the capacity efficiency = (2000 / 2150) * 100 = 93.02%.

Product Gamma Requires a Sequence of 5 Work Centers