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Explain the difference between EFFECTIVE CAPACITY and DESIGN CAPACITY . If Effective Capacity is only 50 per cent of Design Capacity, and Actual Production is
Explain the difference between EFFECTIVE CAPACITY and DESIGN CAPACITY. If Effective Capacity is only 50 per cent of Design Capacity, and Actual Production is 80 per cent of Effective Capacity, what design capacity is need to achieve an actual production level of 8 jobs per week ? (Hint: Use simple algebra to solve for Design Capacity; if E is Effective Capacity, D is Design Capacity, then E=0.5D and Actual Output (Y)=0.8E; therefore, if Y=8, solve for D using the given information.)
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