# Question & Answer: 1. A battery manufacturing plant operates two eight-hour shifts per day and 6 days…..

1. A battery manufacturing plant operates two eight-hour shifts per day and 6 days per week. The manufacturer can produce 375 batteries per hour.

a. Calculate the weekly capacity of the plant.
(1) State the Definition:

(2) Calculate:

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b. If the firm produces the quantity shown below, at what percentage of the capacity will it be operating each week?

 week 1 2 3 4 Actual Production 30,000 32,000 38,000 40,000 Ratio

(1) What ratio are you calculating?

(2) State the formula:

(3) Calculate:

A)

1.Definition: Weekly capacity simply is the amount of unit a machine can make given the number of hours a machine runs in a day.

2.Calculation:

The no of units/week = 375 units per hour * 8 hours per shift *2 shifts per day* 6 days per week

The no. of units/week = 36,000 batteries

B)

 Week 1 2 3 4 Actual Prod 30000 320000 380000 40000 Capacity 36000 36000 36000 36000 Ratio 83.33% 88.89% 105.6% 111.1%

1)We are calculating Capacity Utilization Ratio

2)Capacity utilization Ratio : Acutal or Forcasted Demand/ Capacity of the machine