Sears Appliance Repair has been designed to service one hundred and sixty appliances a day. Taking...
Sears Appliance Repair has been designed to service one hundred and sixty appliances a day. Taking into account its current operating constraints, Sear’s expects to service eighty appliances per day. Sears has, however, been able to actually service seventy-two appliances per day.
- Compute the utilization and efficiency of Sear’s appliance repair center.
- Compute the expected output if the efficiency of Sear’s appliance repair center is seventy percent.
Homework Answers
a. Utilization = (Actual Output/Design Capacity)*100
= (72/160)*100
= 45%
Efficiency = (Actual Output/Effective Capacity)*100
= (72/80)*100
= 90%
b. If efficiency = 70%
70/100 = (Actual Output/80)
Actual Output = 56 Units
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