1. ASSIGNMENT
NAME – Miss. Pallavi Shrikant Disale
REG.NO. – MBA (Agri)-011/07
SUB - Production and Operation Management
TOPIC - Assignment On Numerical
2. Example of Computing Capacity Utilization: In the bakery example the design capacity is
50 custom cakes per day. Currently the bakery is producing 35 cakes per day. On the
average this bakery can make 25 custom cakes per day. What is the bakery’s capacity
utilization relative to both design and effective capacity?
Solution
actual output rate
Utilizatio n 100%
capacity
actual output 35
Utilizatio n effective (100%) (100%) 140%
effective capacity 25
actual output 35
Utilizatio n design (100%) (100%) 70%
design capacity 50
Hence, bakery’s capacity utilization at effective point is 140%
And bakery’s capacity utilization at design point is 70%