Problem 5-1 Determine the utilization and the efficiency for each of these situa

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 5 loans per day. The operation has a design capacity of 16 loans per day and an effective capacity of 7 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 4 furnaces a day if the design capacity is 8 furnaces a day and the effective capacity is 5 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 l. If the design capacity is relatively [Click to selectl, the utilization could be (Click to select) even though the efficiency was (Click to select

Explanation / Answer

a. Actual output =5 loan per day , Design capacity = 16 loans per day , Effective capacity = 7 loans per day

Utilization = Acual output/ design capacity = 5/16 = 31.3 %

Effeciency = Actual output/ Effective Capacity = 5/7 = 71.4%

b)

Actual output =4 furnaces per day , Design capacity = 8 furnaces per day , Effective capacity = 5 furnaces per day   

Utilization = Acual output/ design capacity = 4/8 = 50.0 %

Effeciency = Actual output/ Effective Capacity = 4/5 = 80.0 %

c) This is not necessarly true . If the design capacity is relatively higher than effective capacity, the utilization could be lower even though the effeciency was higher.

  

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