What is the capacity of the system in finished good parts per hour considering the rejection rates?

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To determine the capacity of the system in finished good parts per hour while considering rejection rates, start by looking into the production rate and the impact of rejections on the total viable output.

If the production rate is known (let's say, for instance, the system could produce 100 parts per hour but has an associated rejection rate), then the effective output can be computed by adjusting for those rejections. A rejection rate indicates the proportion of goods that do not meet the quality standards and are therefore discarded.

For example, if the rejection rate of the system is 87%, meaning 13% of the produced parts are acceptable, the calculation would look like this:

  1. Calculate the effective capacity by multiplying the total production rate by the acceptable yield percentage.

  2. If the production rate is 100 parts per hour, then the effective capacity is (100 \times 0.13 = 13) finished good parts per hour.

This means the correct capacity of the system, factoring in the loss from the rejection rates, leads to the conclusion that the output of finished goods is indeed 13 parts per hour. Hence, this scenario aligns with the selection made.

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