A process requires a 20 second setup for each batch. When producing, the process can produce one unit every 12 seconds. Demand for the product is 7 units per minute. With a batch size of 20 units, what is the process utilization?

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A process requires a 20 second setup for each batch. When producing, the process can produce one unit every 12 seconds. Demand for the product is 7 units per minute.

With a batch size of 20 units, what is the process utilization?

Note: Do not round your intermediate calculations. Round your answer to 2 decimal places

Expert Solution
Step 1 Introduction:-

Production is the process in which inputs are combined to have the required output. It includes a number of tools, equipment, materials, machinery, etc. Production is not related to producing one product, it's producing the products in large quantities. Certain expenses and costs are connected to the production process. All these costs are to be managed along with certain activities to achieve the production targets effectively. 

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