Question

Yukulime LLC manufactures sporting apparel accessories for adidas in a dedicated assembly line located in Bangladesh. The assembly line is capable of producing 20 thousand units annually, when operating throughout the entire year. However, due to lower demand, the assembly line only operates 35 weeks out of the 52 weeks of the year. What is the utilization ratio of the assembly line? Enter percentage value with one decimal point

Answer 1

67.3%

Explanation:

The utilization ratio is given by the actual operation volume divided by the total operation capacity of the assembly line. Since the assembly line only operates during 35 weeks out 52 weeks of the year, the utilization ratio is:

`r=(35)/(52)\\r=0.673=67.3\%`

Yukulime LLC's assembly line has an utilization rate of 67.3%.