Operations Management
1. Determine the utilization and the efficiency for eachof these situations:
a. A loan processing operation that processes an average of 7 loansper day. The operation has a design capacity of 10 loans per dayand an effective capacity of 8 loans per day.
b. A furnace repair team that services an average of four furnacesa day if the design capacity is six furnaces a day and theeffective capacity is five furnaces a day.
c. Would you say that systems that have higher efficiency ratiosthan other systems will always have higher utilization ratios thanthose other systems? Explain.
Please write it step by step in order for us tolearn.
