Asked by Na'Diamond Swain on Jul 11, 2024
Verified
An executive conference centre has the physical ability to handle 1,100 participants. However, conference management personnel believe that only 1,000 participants can be handled effectively for most events. The last event, although forecasted to have 1,000 participants, resulted in the attendance of only 950 participants. What are the utilization and efficiency of the conference facility?
Utilization
The extent to which an entity (e.g., equipment, workforce) is being used efficiently to produce goods or services.
Efficiency
The ratio of the output produced to the input resources used in the production process, indicating the effectiveness of resource utilization.
- Calculate and interpret the utilization and efficiency of business operations.
Verified Answer
SC
Silvana CotrinaJul 13, 2024
Final Answer :
Design Capacity = 1,100 participants
Effective Capacity = 1,000 participants
Actual Output = 950 participants
Utilization = actual output design capacity \frac { \text { actual output } } { \text { design capacity } } design capacity actual output = 9501,100\frac { 950 } { 1,100 }1,100950 = 86.4%
Efficiency = actual output design capacity \frac { \text { actual output } } { \text { design capacity } } design capacity actual output = 9501000\frac { 950 } { 1000 }1000950 = 95.0%
Effective Capacity = 1,000 participants
Actual Output = 950 participants
Utilization = actual output design capacity \frac { \text { actual output } } { \text { design capacity } } design capacity actual output = 9501,100\frac { 950 } { 1,100 }1,100950 = 86.4%
Efficiency = actual output design capacity \frac { \text { actual output } } { \text { design capacity } } design capacity actual output = 9501000\frac { 950 } { 1000 }1000950 = 95.0%
Learning Objectives
- Calculate and interpret the utilization and efficiency of business operations.
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