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Joe’s Tasty Burger has determined that its production facilityhas a design capacity of 400 hamburgers per day. Th e eff ectivecapacity, however, is 250 hamburgers per day. Lately Joe hasnoticed that output has been 300 hamburgers per day. Computeboth design and eff ective capacity utilization measures. What canyou conclude?

Joe’s Tasty Burger has determined that its production facilityhas a design capacity of 400 hamburgers per day. Th e eff ectivecapacity, however, is 250 hamburgers per day. Lately Joe hasnoticed that output has been 300 hamburgers per day. Computeboth design and eff ective capacity utilization measures. What canyou conclude?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Joe’s Tasty Burger has determined that its production facility
has a design capacity of 400 hamburgers per day. Th e eff ective
capacity, however, is 250 hamburgers per day. Lately Joe has
noticed that output has been 300 hamburgers per day. Compute
both design and eff ective capacity utilization measures. What can
you conclude?

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