a. For the past month, the plant in Problem S7.1, which has an effective capacity of 6,500, has made only 4,500 hammers per day because of material delay, employee absences, and other problems. What is its efficiency?
Amy Xia’s plant was designed to produce 7,000 hammers per day but is limited to making 6,000 hammers per day because of the time needed to change equipment between styles of hammers. What is the utilization?
b. 1. If a plant has an effective capacity of 6,500 and an efficiency of 88%, what is the actual (planned) output?
2. A plant has an effective capacity of 900 units per day and produces 800 units per day with its product mix; what is its efficiency?
3. Material delays have routinely limited production of household sinks to 400 units per day. If the plant efficiency is 80%, what is the effective capacity?
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