Kennywood Inc., a manufacturing firm, is able to produce 1 comma 200 pairs of pants per hour, at maximum efficiency. There are three eightminushour shifts each day. Due to unavoidable operating interruptions, production averages 900 units per hour. The plant actually operates only 27 days per month. Based on the current budget, Kennywood estimates that it will be able to sell only 501 comma 000 units due to the entry of a competitor with aggressive marketing capabilities. But the demand is unlikely to be affected in future and will be around 517 comma 000. Assume the month has 30 days. What is the practical capacity for the month?

Question

Marcelo Roberson

Business

15 March, 20:27

Kennywood Inc., a manufacturing firm, is able to produce 1 comma 200 pairs of pants per hour, at maximum efficiency. There are three eightminushour shifts each day. Due to unavoidable operating interruptions, production averages 900 units per hour. The plant actually operates only 27 days per month. Based on the current budget, Kennywood estimates that it will be able to sell only 501 comma 000 units due to the entry of a competitor with aggressive marketing capabilities. But the demand is unlikely to be affected in future and will be around 517 comma 000. Assume the month has 30 days. What is the practical capacity for the month?

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Answers (1)

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Walter Calderon · Answer 1

583,200 units

Explanation:

Practical capacity per unit = 900 units per hour

Hours per shift = 8 hours

Number of hours worked each day = 3 shifts * 8 hours = 24 hours

Number of days of operation in a month = 27 days

Practical capacity for the month = 900 * 24 * 27 = 583,200 units