Question

Problem 5-1 Determine the utilization and the efficiency for each of these situations: a. A loan processing operation that processes an average of 6 loans per day. The operation has a design capacity of 13 loans per day and an effective capacity of 10 loans per day. (Round your answer to 1 decimal place. Omit the "%" sign in your response.) Utilization Efficiency b. A furnace repair team that services an average of 3 furnaces a day if the design capacity is 9 furnaces a day and the effective capacity is 8 furnaces a day. (Round your answer to 1 decimal place. Omit the "%" sign in your response.) Utilization Efficiency 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 (Click to select) . If the design capacity is relatively (Click to select) even though the efficiency was (Click to select) 9. , the utilization could be (Click to select)

Answer 1

EFFICIENCY = ACTUAL OUTPUT / EFFECTIVE CAPACITY

EFFECTIVE CAPACITY = 10

ACTUAL OUTPUT = 6

EFFICIENCY = (6 / 10) * 100 = 60

UTILIZATION = ACTUAL OUTPUT / DESIGN CAPACITY

DESIGN CAPACITY = 13

ACTUAL OUTPUT = 6

UTILIZATION = (6 / 13) * 100 = 46.2

2. EFFECTIVE CAPACITY = 8

ACTUAL OUTPUT = 3

EFFICIENCY = (3 / 8) * 100 = 37.5

DESIGN CAPACITY = 9

ACTUAL OUTPUT = 3

UTILIZATION = (3 / 9) * 100 = 33.3

3. TRUE, HIGH, LOW, HIGH