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To the nearest hour, what is the rated capacity of a work center with 2 machines working 8 hours a day and 5 days a week, with a utilization of 80 percent and efficiency of 90 percent?

  1. 37 hours

  2. 40 hours

  3. 58 hours

  4. 80 hours

The correct answer is: 58 hours

To calculate the rated capacity of a work center, the formula involves several components: the number of machines, the available working hours, utilization, and efficiency. First, determine the total available hours per week: - Each machine operates for 8 hours a day and there are 5 days in a week. Thus, for one machine: 8 hours/day × 5 days/week = 40 hours/week. Since there are 2 machines, the combined operational hours would be: - 40 hours/week × 2 machines = 80 hours/week. Next, we account for utilization and efficiency. Utilization is the percentage of available time that the machines are actually in use, while efficiency assesses how well they are operating during that time. Applying the utilization: - At 80% utilization, the effective hours worked per week become: 80 hours/week × 80% = 64 hours/week. Next, we apply the efficiency rate of 90%, indicating how productive those utilized hours are: - The effective capacity then adjusts for efficiency: 64 hours/week × 90% = 57.6 hours/week. Rounding 57.6 hours to the nearest hour gives us 58 hours per week. Therefore, the