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Management Studies

How to calculate factory Production Capacity Utilization Rate for Multiple Products?

Scenario 1: A factory produces only 1 type of product: Seashell T-Shirt. The factory can produce up to 10,000 units every quater. The budgeted production volume for the current quater is 5,000 units. In this case Production Capacity Utilization Rate is 50%?

Scenario 2: A factory produces 2 types of products: Seashell T-Shirt and Wavy T-Shirt. The factory can produce up to 10,000 Seashell T-Shirt and 7,500 Wavy T-Shirt every quater. The budgeted production volume for the current quater is 5,000 Seashell T-Shirt and 2,500 Wavy T-Shirt. What is the overall factory Production Capacity Utilization Rate?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92441365

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