CAPAcity ratio

This topic has 5 replies, 2 voices, and was last updated 4 years ago by John Moffat.

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August 24, 2021 at 8:27 am #632710

johnbriane
Member

Sir should the capacity ratio be greater than 100% ?

August 24, 2021 at 9:41 am #632724

John Moffat
Keymaster

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

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

Potentially if they get more labour then they are able to produce more.

August 24, 2021 at 5:47 pm #632782

johnbriane
Member

But then if there is no efficiency then it’s pointkess right sir ?

August 25, 2021 at 8:47 am #632832

John Moffat
Keymaster

Yes, which is why they will consider all of the ratios.
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