capacity utilisation

Question 1

capacity utilisation

Answer 1

measures output lev as % of max output lev
so it shows % of potential output being used

Question 2

formula

Answer 2

actual lev output/max poss output x 100

Question 3

under utilisation

Answer 3

under 60%
resourses not uased effectively
idle resourses

Question 4

uu dis

Answer 4

fc shared across less units= avg cost per unit high
less efficient red pm so loss of sales and comp adv
Workers under-deployed leading fears of redundancy

Question 5

uu adv

Answer 5

but greater flexibility to meet orders and repair without delaying orders

Question 6

to increase capacity when low

Answer 6

rationalise to reduce excess cap
sub contract work by leasing spare cap
incraese demand= prom,brands, reposition, new prod and resourses

Question 7

over utillisation

Answer 7

eg 115 over producing

Question 8

oo dis

Answer 8

struggle to accept extra orders,
workers=under pressure= more mistakes= cost= diseconmies

Question 8

utilise cap for oo

Answer 8

reduce deman
outsourse parts
invest more resourses

Question 8

oo adv

Answer 8

opp for gowth and avg cost low as tfc shared over large output