DSIM 577 -Capacity  solve each problem manually The Widgets-R-Us Co. produces glass widgets. The plant is designed to produce 60 widgets per hour, and there is one 10-hour shift per working day. However, with scheduled breaks and needed setups taking about 15 minutes each hour, the plant can only effectively produce 45 widgets

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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DSIM 577 -Capacity 

solve each problem manually

The Widgets-R-Us Co. produces glass widgets. The plant is designed to produce 60 widgets per hour, and there is one 10-hour shift per working day. However, with scheduled breaks and needed setups taking about 15 minutes each hour, the plant can only effectively produce 45 widgets per hour for the 10 hours. As it happens, the plant produces 300 widgets per day. Answer the following:

__________1a. What is the design capacity of the plant in widgets per day?

__________1b. What is the effective capacity of the plant in widgets per day?

__________1c. What is the efficiency ratio of the plant?

_________1d. What is the utilization ratio of the plant?

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