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marishachu [46]
3 years ago
7

1. Determine the utilization and the efficiency for each of these situations: a. A loan processing operation that processes an a

verage of 7 loans per day. The operation has a design capacity of 10 loans per day and an effective capacity of 8 loans per day.
Business
1 answer:
arsen [322]3 years ago
7 0

Answer:

Efficiency is 87.50% and Utilization is 70%

Explanation:

Actual ouput = 7 loans per day

Effective capacity = 8 loans per day

Design capacity = 10 loans per day

Therefore,

Efficiency = actual output÷effective capacity×100%

= 7 ÷ 8 × 100%

Efficiency = 87.50%

Utilization = actual output÷design capacity×100%

= 7 ÷ 10 × 100%

Utilization = 70%

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Schach [20]

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