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Determine the capacity efficiency of the shop.

Determine the capacity efficiency of the shop.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Radasys Inc. operates a shoe repair shop in Nelspruit, Mpumalanga. An operations analyst has gathered the following data on the shop: • Design capacity of the facility is 112 pairs of shoes • Effective capacity of the facility is 80 pairs of shoes Backlog in the system is 16 pairs of shoes • Actual service rate is 67 pairs of shoes for the past month Expected capacity was 90 pairs of shoes Capacity in the system is 24 pairs of shoes REQUIRED: Determine the capacity efficiency of the shop. ● A. The capacity efficiency is 83.75%. B. The capacity efficiency is 74.44%. O C. The capacity efficiency is 35.82%. O D. The capacity efficiency is 71.43%.
Transcribed Image Text:Radasys Inc. operates a shoe repair shop in Nelspruit, Mpumalanga. An operations analyst has gathered the following data on the shop: • Design capacity of the facility is 112 pairs of shoes • Effective capacity of the facility is 80 pairs of shoes Backlog in the system is 16 pairs of shoes • Actual service rate is 67 pairs of shoes for the past month Expected capacity was 90 pairs of shoes Capacity in the system is 24 pairs of shoes REQUIRED: Determine the capacity efficiency of the shop. ● A. The capacity efficiency is 83.75%. B. The capacity efficiency is 74.44%. O C. The capacity efficiency is 35.82%. O D. The capacity efficiency is 71.43%.
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