Kennywood Inc., a manufacturing firm, is able to produce 1,000 pairs of pants per hour, at maximum efficiency. There are three eight-hour shifts each day. Due to unavoidable operating interruptions, production averages 800 units per hour. The plant actually operates only 28 days per month. Based on the current budget, Kennywood estimates that it will be able to sell only 501,000 units due to the entry of a competitor with aggressive marketing capabilities. But the demand is unlikely to be affected in future and will be around 519,000. Assume the month has 30 days.
What is the practical capacity for the month?

Question

Quizplus · Accepted Answer

Practical capacity for the month is 537,600 units (800 × 8 × 3 × 28).