Question

Yukulime LLC manufactures sporting apparel accessories for adidas in a dedicated assembly line located in Bangladesh. The assembly line is capable of producing 20 thousand units annually, when operating throughout the entire year. However, due to lower demand, the assembly line only operates 31 weeks out of the 52 weeks of the year. What is the utilization ratio of the assembly line?

Answer 1

Number of units that is capable of producing = 20,000

Actual number of units produced = 20,000 X 31/52 = 11,923.0769

Utilization Ratio = Actual number of units produced/ Number of units that is capable of producing

                        =11,923.0769/20,000

                       = 31/52 = 0.5961

So,

Answer is:

0.5961