# Problem 5-1 Determine the utilization and the efficiency for each of these situations: a. A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 13 loans per day and an effective capacity of 8 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 2 furnaces a day if the design capacity is 10 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.) 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) false true . If the design capacity is relatively (Click to select) high low , the utilization could be (Click to select) low high even though the efficiency was (Click to select) low high .

a. Utilization = Actual output/Design capacity = 7/13 = 53.8%
Efficiency = Actual output/Effective capacity = 7/8 = 87.5%

b Utilization = Actual output/Design capacity = 2/10 = 20%
Efficiency = Actual output/Effective capacity = 2/6 = 33.3%

c. False. Even though design capacity and efficiency is high, the utilisation need not be high.

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