Question

In: Operations Management

If the production system for a product has a utilization of 60 percent and a yield...

If the production system for a product has a utilization of 60 percent and a yield of 55 percent, what capacity is needed to produce 900 units a year?

Solutions

Expert Solution

Let the capacity be C

Final Output = 60% * 55% * C = .33 C

Output required = 900 units

0.33 C = 900

C = 2727.27 units

Capacity needed = 2728 units

keosha answered 2 years ago
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