Question

What is the maximum hourly output from a process with four steps having outputs of 20 units/hour, 25 units/hour, 30 units/hour and 15 units/hour?

Answer 1

The maximum hourly output from the process with four steps is:

22.5 units/hour.

Step-by-step explanation:

a) Data and Calculations:

Outputs:

20 units/hour,

25 units/hour,

30 units/hour and

15 units/hour

Total units 90

Total hours = 4

Maximum hourly output = Total output units divided by the total hours

= 90/4

= 22.5 units per hour.

b) This implies that the process can produce 22.5 units per hour at its maximum performance. This is also the average output from the four processing steps.