Question

Determine the utilization and the efficiency for each of these situations: a. A loan processing operation that processes an average of 4 loans per day. The operation has a design capacity of 11 loans per day and an effective capacity of 9 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 3 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?

Answer 1

Answer:

The answer to the given problem is given below.

Explanation:

a.

Utilization  = Actual Output/Design Capacity = $\frac{4}{11}$ = 36.4%

Efficiency  = Actual Output/Design Capacity = $\frac{4}{9}$ = 44.4%

b.

Utilization  = Actual Output/Design Capacity = $\frac{3}{7}$ = 42.9%

Efficiency  = Actual Output/Design Capacity = $\frac{3}{6}$ = 50%

c.

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