Working Practice Scm Problems Could Use Help Understanding 1 Work Center Consists 3 Machin Q34287406

Working on some practice SCM problems and could use some helpunderstanding.

1) A work center consists of 3 machines that are operated 8hours per day for 5 days per week. Utilization has been 75% andefficiency has been 110%. What is the ratedcapacity?

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2) A work center produces 90 standard hours of work in one week.The hours scheduled (available) are 80, although 70 are actuallyworked. Calculate the utilization and efficiency of thework center.

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Expert Answer

Capacity requirementplanning is nothing but the accounting method that helpsin finding out the available production capacity of a company. Ithelps the organization to meet its production