Scorla Corp. is an apparel manufacturing factory. Its average resource utilization per year is calculated as 70%. The average safety capacity of Scorla Corp. is _____.
A) 20%
B) 30%
C) 40%
D) 50%

Question

Quizplus · Accepted Answer

Resource utilization is the percentage of the total capacity that is actually being used. If Scorla Corp. has an average resource utilization of 70%, it means that 30% of its capacity is not being used. This unused capacity can be considered as its safety capacity, which is the capacity reserved for unexpected situations or demand spikes. Therefore, the average safety capacity of Scorla Corp. is 30%.