Question: A). What are rated capacity, utilization, and efficiency? How are they related. B). A work center consisting of 3 machines operates 40 hours a week.

A). What are rated capacity, utilization, and efficiency? How are they related.

B). A work center consisting of 3 machines operates 40 hours a week. In a 4-week period, it actually worked 355 hours and produced 475 standard hours of work. Calculate the utilization and efficiency of the work center. What is the demonstrated weekly capacity of the work center

C). A work center has the following open and planned orders for week 4. Calculate the total standard time required (load).

Order Quantity

Setup Time

(hours)

Run time

(hour/piece)

Total time

(hours)

Release orders 120 300 1.00 0.10
340 200 0.30 0.30
Planned orders 560 300 0.25 0.25
780 500 0.15 0.15
Total time (standard hours)

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