Suppose operation X feeds directly into operation Y. All of X's output goes to Y, and Y has no other operations feeding into it. X has a design capacity of 80 units per hour and an effective capacity of 72 units per hour. Y has a design capacity of 100 units per hour. What is Y's maximum possible utilization?
A)80 percent
B)72 percent
C)90 percent
D)70 percent
E)60 percent

Question

Quizplus · Accepted Answer

Y's maximum possible utilization is determined by the output it receives from X, which is its only input source. Since X's effective capacity is 72 units per hour and all of X's output goes to Y, Y's maximum possible utilization is based on receiving 72 units per hour. Utilization is calculated as (Actual Output/Design Capacity) * 100%. Therefore, Y's maximum possible utilization is (72/100)*100% = 72%.

Suppose Operation X Feeds Directly into Operation Y