In a garments factory, a part requires 0.10 hours of labor per unit in Work Center B and 1 hour of setup time. The planned order release (order size) for a week is 2000 units. Which of the following is the capacity requirement for a week at Work Center B? a. 101

b. 151

c. 251

d. 201

d. 201

Explanation:

The computation of the capacity requirement is shown below:

= Order size in units * labor hours per unit + setup time

= 2,000 units * 0.10 hours + 1

= 200 hours + 1

= 201 hours

Simply we multiplied the order size with labor hours per unit and add the setup time so that the correct hours could come. So, we take all the items for the computation part.