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Assume the following information: Actual run time this week 4,500 minutes Machine time available this week 5,000 minutes Actual run rate this week 3.5 units

Assume the following information:

Actual run time this week 4,500 minutes
Machine time available this week 5,000 minutes
Actual run rate this week 3.5 units per minute
Ideal run rate 4.0 units per minute
Defect-free output this week 15,000 units
Total output this week (including defects) 15,750 units

The utilization rate is closest to:

Multiple Choice

  • 0.88.

  • 0.75.

  • 0.95.

  • 0.90.

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