In: Operations Management
Given information is as shown under:
Design Capacity = |
500 |
lab tests per day |
Effective Capacity = |
450 |
lab tests per day |
Actual output = |
300 |
lab tests per day |
Answer a)
Efficiency |
=(Actual output/ Effective Capacity) |
Efficiency |
66.67% |
Utilization |
=(Actual output / Design Capacity) |
Utilization |
60.00% |
Answer b)
For the facility to operate at 80% efficiency, the actual output has to increase.
Efficiency = (Actual output / Effective Capacity)
80% = (Actual Output / 450)
80/100 = (Actual Output / 450)
0.80 = (Actual Output / 450)
Actual Output = 0.80*450 = 360 lab test per day
Hence, Actual Output should be equal to 360 lab test per day for the facility to operate at 80% efficiency
Answer c)
Lower effective capacity could be because of the following factors:
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