Determine the capacity utilization for labor and machine

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Reference no: EM13922396

A company that manufactures paving material for driveways and parking lots expects the following demand for its product for the next four weeks:

Week number

1

2

3

4

Material (tons)

40

80

60

70

The company's labor and machine standards and available capacities are as follows:

 

Labor

Machine

Production standard (hours per ton)

 

4

 

3

Weekly production capacity (hours)

 

300

 

200

a. Determine the capacity utilization for labor and machine for each of the four weeks.

b. In which weeks do you foresee a problem? What options would you suggest to resolve any problems? What costs are relevant in making a decision on choosing an option?

Reference no: EM13922396

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