BUSI 411 Operations Management Ch 5

vlptnl4 Assignment Print Vien

award: 3.60 points

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

a. A loan pree$sing operation that processe an avemge of I loans per day. The operation has a design capacity of 16 loans per day and an effective capacity of 14 loans per day. (Round your answer to 1 decimal place. Omit the "o/o" sign in your response.)

Utilization

Efficiency

A fumace repair team that services an avefiage of 4 fumaces a day if the design capacity is g fumaces a day and the effective capacity is 8 fumaces a day. (Round your answer to 1 decimal place. Omit the "7o" sign in your response.)

Utilization

Efficiency

Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratim than those other systems?

This is not necessarily (Click to select) v . [f the design capacity is relatively (Click to select) the utilization could be (Click to select) v even though the efficiency was (Click to select) v .

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o/ /o

%

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o//o

Worksheet

Problem 5-1

Difficulty. 1 Easy

Learn i ng Objective ; 05-03 Describe ways of defining and measuring capacity.

award: 3.60 points

Problem 5-4 A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two altematives, A and B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $37,000 for A and $31,000 for B; variable costs per unit would be $g for A and $11 for B; and revenue per unit would b€ $19.

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