Part 1Amy Xia's plant is designed to produce 10,00010,000 hammers per day but is limited to making 6,0006,000 hammers per day because of the time needed to change equipment between styles of hammers.Part 2The utilization rate for the plant = [input]enter your response here % (enter your answer as a percentage rounded to two decimal places).

Question

Part 1Amy​ Xia's plant is designed to produce 10,00010,000 hammers per day but is limited to making 6,0006,000 hammers per day because of the time needed to change equipment between styles of hammers.Part 2The utilization rate for the plant​ = [input]enter your response here ​%​ (enter your answer as a percentage rounded to two decimal​ places).

BlackTom AI · Accepted Answer

The problem presents a plant with a designed capacity of 10,000 hammers per day, but actual output is limited to 6,000 per day due to changeover time.

To evaluate utilization, compare actual output to the designed capacity: utilization = (actual output / design capacity) × 100%.

Here, actual output = 6,000 hammers/day and design capacity = 10,000 hammers/day.

Compute the ratio: 6,000 ÷ 10,000 = 0.60.

Convert to a percentage: 0.60 × 100% = 60.00% when rounded to two decimal places.

This reflects how efficiently the plant is using its designed capacity given the downtime/changeover constraint. If the plant could operate at full capacity without changeover delays, utilization would approach 100%; the 60.00% figure indicates a substantial underutilization relative to design capacity due to the stated bottleneck.

Note: There are no answer choices provided in this item, so the calculation steps above demonstrate how to arrive at the numerical value for utilization.

Test:Exam#2

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