Question: Maximum capacity ( labor hours ) : 5 0 0 hours per week Effective capacity ratio: 9 2 % Actual time worked: 3 2 5

Maximum capacity (labor hours): 500 hours per week
Effective capacity ratio: 92%
Actual time worked: 325 hours per week over the last two weeks
On-time delivery %: 85 percent of the jobs are being completed on time
Calculate the effective capacity and actual utilization.
Do we need to add more capacity?

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