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18 September, 06:39

A company produces 11,900 units of which 200 are spoiled units because the process, even though carefully and efficiently executed is unable to produce good units 100% of the time. Another 120 units are spoiled because machines broke down and there also were operator errors. What is the normal spoilage rate (round to two decimal places) ?

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  1. 18 September, 09:12
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    Normal spoilage rate = 1.6978% (Approx)

    Explanation:

    Given:

    Total unit produce = 11,900 units

    Normal spoil unit = 200 units

    Abnormal spoil unit = 120 units

    Total normal unit produce = 11,900 - 120 = 11,780

    Computation of normal spoilage rate:

    Normal spoilage rate = Normal spoil unit / Total normal unit produce

    Normal spoilage rate = 200 / 11,780

    Normal spoilage rate = 0.0169779287

    Normal spoilage rate = 1.6978% (Approx)
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