Question

8. 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

1. The utilization of the conference facility with a maximum physical capacity of 1,100 participants is 0.86 (86%).

2. The efficiency of the conference facility is 0.95 (95%).

How is utilization different from efficiency?

Efficiency is the percentage of the actual output to the expected output.

On the other hand, capacity utilization measures the maximum (theoretical or potential) capacity against the actual output.

Data and Calculations:

Maximum capacity = 1,100 participants

Expected output = 1,000 participants

Actual output = 950 participants

Capacity Utilization = Maximum capacity/Actual output

= 0.86 (1,100/950)

Efficiency = Expected output/Actual output

= 0.95 (1,000/950)

Thus, while capacity utilization is 86%, the efficiency of the conference center is 95%.

Learn more about capacity utilization and efficiency at brainly.com/answer expert verifiedhttps://brainly.com/question/18188877

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