Answer:
Effective capacity= 500 units
Explanation:
Effective capacity is defined as the maximum amount of product a manufacturing process can complete in a given period. Considering constraints such as delays, quality problems, and material handling.
Effective capacity is dependent on the design of the system. Design capacity is defined as the theoretical capacity of a system based on its design.
Effective capacity is calculated by dividing the actual capacity by efficiency.
Effective capacity= Actual Capacity/ Efficiency
Effective capacity= 400/0.8
Effective capacity= 500 units
