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16 April, 18:53

The movie theater has scheduled 6 showings a day. The movie theater can play a maximum of 8 trailers for every movie showing. However, because of the time needed to clean the theater after each showing, only 32 trailers are played every day. What is the Effective capacity utilization?

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  1. 16 April, 19:14
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    The effective capacity utilization is 66.7%.

    Explanation:

    Effective capacity utilization is a metric used to determine whether th potential capacity is being utilized or not. This capacity utilization is also called the operating rate.

    Capacity utilization is usually expressed by the formula: (Actual output / Maximum output) x 100

    The maximum output per the question is 6 showings x 8 trailers = 48 trailers

    Meanwhile, the actual out is 32 trailers

    So, capacity utilization = 32/48 x 100 = 66.7%
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