Determine the utilization and the efficiency for each of these situations: a. A

Question

Determine the utilization and the efficiency for each of these situations:

a. A loan processing operation that processes an average of 5 loans per day. The operation has a design capacity of 14 loans per day and an effective capacity of 12 loans per day. (Round your answer to 1 decimal place. Omit the "%" sign in your response.)

b. A furnace repair team that services an average of 2 furnaces a day if the design capacity is 7 furnaces a day and the effective capacity is 6 furnaces a day. (Round your answer to 1 decimal place. Omit the "%" sign in your response.)

c. Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than those other systems?

This is not necessarily (false , true) . If the design capacity is relatively ( low , high) , the utilization could be ( high . low )even though the efficiency was ( high , low )

Explanation / Answer

A.

Utilization = Actual use or output/ Design capacity = 5/14 = 35.7 (%)

Efficiency = Actual use or output/ effective capacity = 5/12 = 41.7 (%)

B.

Utilization = Actual use or output/ Design capacity = 2/7 = 28.6 (%)

Efficiency = Actual use or output/ effective capacity = 2/6 = 33.3 (%)

C.

True

High

Low

High

Above statements are exemplified by the numerical examples in part A and B.

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