In an automobile factory, a component requires 0.75 hours of labor per unit in Work Center A and 1 hour of setup time. The planned order release (order size) for a week is 200 units. What is the capacity requirement for a week at Work Center A

The capacity requirement for a week at Work Center A is 151 hours

Explanation:

Labor hours per unit of component in automobile factory = 0.75 hours

Setup time required in Work Center A = 1 hour

The planned order size for a week = 200 units.

Capacity = Setup time + [Processing time * Order size].

Capacity = 1 + (0.75 * 200) Capacity = 1 + 150 Capacity = 151 hours