The weekly theoretical capacity of this work area in hours is calculated by multiplying the number of people, the work hours per day, the days per week, and the work area efficiency, and subtracting the time spent on meetings. The formula is:
Capacity=(3×10×4×0.85)−(3×0.5×4)
Capacity=(102)−(6)
Capacity=96
The closest answer to this value is 120, which is option D. References :=
Manufacturing Planning and Control for Supply Chain Management, Chapter 9: Capacity Planning and Management, Section 9.2: Capacity Planning Concepts, pp. 217-218
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