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CAPAcity ratio

This topic has 5 replies, 2 voices, and was last updated 1 year ago by John Moffat.

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August 24, 2021 at 8:27 am #632710
johnbriane
Member
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Sir should the capacity ratio be greater than 100% ?
August 24, 2021 at 9:41 am #632724
John Moffat
Keymaster
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It could be higher or lower than 100%, but a company would want it to be 100% or more.
August 24, 2021 at 10:40 am #632727
johnbriane
Member
- Topics: 170
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What’s the benefit of it’s higher than 100%
And will it always be a benefit for the company if the capacity ratio is greater than 100%
August 24, 2021 at 2:56 pm #632751
John Moffat
Keymaster
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Potentially if they get more labour then they are able to produce more.
August 24, 2021 at 5:47 pm #632782
johnbriane
Member
- Topics: 170
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But then if there is no efficiency then it’s pointkess right sir ?
August 25, 2021 at 8:47 am #632832
John Moffat
Keymaster
- Topics: 56
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Yes, which is why they will consider all of the ratios.
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