In a job shop, effective capacity is only 50 percent of design capacity, and actual output is 80 percent of effective output. What design capacity would be needed to achieve an actual output of eight jobs per week?
Effective capacity = .50 (Design Capacity)
Actual output = .80 (Effective capacity)
Actual output desired = 8 jobs per week
Actual output = (.80) x [(.50)(Design capacity)]
Actual output = (.40)(Design capacity)
By substitution (Actual output desired = 8 jobs from above):