A factory has design capacity of 2,000 units and actual output of 1,500 units. Capacity utilisation is:

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A factory has design capacity of 2,000 units and actual output of 1,500 units. Capacity utilisation is:

Identify the formula for capacity utilization.

Capacity utilization is calculated as the ratio of actual output to design capacity, expressed as a percentage.
$$
\text{Capacity Utilization} = \frac{\text{Actual Output}}{\text{Design Capacity}} \times 100\%
$$

Substitute the given values into the formula.

Given: Actual Output = 1,500 units, Design Capacity = 2,000 units.
$$
\text{Capacity Utilization} = \frac{1,500}{2,000} \times 100\%
$$

Calculate the capacity utilization.
$$ \text{Capacity Utilization} = 0.75 \times 100\% = 75\% $$ The correct option is **75%**.
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  The correct option is Responds more quickly to recent demand.
  
  In exponential smoothing, the alpha ( $\alpha$ ) value is the smoothing constant. A higher alpha value (closer to 1) gives more weight to recent actual demand and less weight to past forecasts, making the forecast more responsive to recent changes in demand. Conversely, a lower alpha value (closer to 0) gives more weight to past forecasts, making the forecast smoother and less reactive to recent fluctuations.
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A factory has design capacity of 2,000 units and actual output of 1,500 units. Capacity utilisation is:

Step-by-step solution

Identify the formula for capacity utilization.

Substitute the given values into the formula.

Calculate the capacity utilization.

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