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The capacity of a seasonal agro-processing plant is normally fixed by

  • A.The market's daily demand
  • B.The peak arrival rate of raw material
  • C.The annual tonnage divided by 365 days
  • D.The size of the largest available machine

Answer: B

Correct answer: The peak arrival rate of raw material

A seasonal crop arrives in a short window and cannot be held back - it must be processed within days of harvest or it is lost. The plant must therefore be sized for the peak arrival rate, which is why such plants stand idle for much of the year and why their utilisation factors look so poor.

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