Question

You are working for a company that has four workers. Each has their own best operating level for getting projects completed. The first worker can do 1.5 project per day. The second can do 2 projects per day. The third can do 3 projects per day. The fourth worker can do 1.5 projects per day. However, due to a lack of available computers (i.e., the bottleneck), the actual number of projects completed per day is only 2. What is the capacity utilization rate for this company?

Answer 1

Answer:

25%

Explanation:

Given:

Projects done by first worker per day = 1.5

Projects by second worker per day = 2

Projects by third worker per day = 3

Projects by fourth worker per day = 1.5

Actual projects completed per day = 2

Now,

Capacity utilization = $\frac{\textup{Actual work done per day}}{\textup{Maximum capacity per day }}$

or

Capacity utilization = $\frac{\textup{2}}{\textup{1.5+2+3+1.5}}$

or

Capacity utilization = $\frac{\textup{2}}{\textup{8}}$

or

Capacity utilization = 0.25

= 25%