8. A process is designed to produce 2,000 units per hour. The process has a scrap rate of 2 percent and an 8 percent inherent inefficiency. Assuming that the actual output of the process is 1,750 units per hour, what are the process design capacity, available capacity, actual capacity, capacity utilization, efficiency, and output gap for this process?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section4.8: Data Envelopment Analysis (dea)
Problem 42P
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8. A process is designed to produce 2,000 units per hour. The process has a scrap rate of 2
percent and an 8 percent inherent inefficiency. Assuming that the actual output of the
process is 1,750 units per hour, what are the process design capacity, available capacity,
actual capacity, capacity utilization, efficiency, and output gap for this process?
Transcribed Image Text:8. A process is designed to produce 2,000 units per hour. The process has a scrap rate of 2 percent and an 8 percent inherent inefficiency. Assuming that the actual output of the process is 1,750 units per hour, what are the process design capacity, available capacity, actual capacity, capacity utilization, efficiency, and output gap for this process?
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