Question

An executive conference center has the physical ability to handle 1,100 participants. However, conference management personnel believe that only 1,000 participants can be handled effectively for most events. The last event, although forecasted to have 1,000 participants, resulted in the attendance of only 950 participants. What are the utilization and efficiency of the conference facility?

Answer 1

Given Information:

Design capacity = 1100 participants

Effective capacity = 1000 participants

Actual output = 950 participants

Required Information:

Utilization = ?

Efficiency = ?

Answer:

Utilization = 86.36%

Efficiency = 95%

Explanation:

The Utilization is equal to the actual output divided by the design capacity.

Utilization = actual output/design capacity

actual output is 950 participates and design capacity is 1100 participants

Utilization = 950/1100 = 0.8636

Utilization = 86.36%

The Efficiency is equal to the actual output divided by the effective capacity.

Efficiency = actual output/effective capacity

actual output is 950 participates and effective capacity is 1000 participants

Efficiency = 950/1000 = 0.95

Efficiency = 95%