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Example of Production Rate
The turret lathe section contains six machines, all devoted to the production of the similar part. The section operates 10 shifts/wk. The number of hours per shift averages 8.0. Average production rate of each machine is 17 unit/hr. Calculate the weekly production capacity of the turret lathe section.
Solution
Given Number of machines n = 6
Number of shifts per week S = 10
Number of hours per shift H = 8
Production rate Rp = 17
Production capacity = n x S x H x Rp
∴ PC = 6 (10) (8.0) (17) = 8160 output unit/wk
Define marginal revenue?
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