Asked by Gavin VandenTop on Jul 08, 2024
Verified
Distinguish between utilization and efficiency.
Utilization
The degree to which a capacity, resource, or system is being used effectively to produce goods or services.
- Absorb the nuances distinguishing design capacity, effective capacity, utilization, and efficiency.
Verified Answer
ON
Overlooked NomoreJul 09, 2024
Final Answer :
Both are ratios, not item counts. Both use actual output in the ratio numerator. Utilization is the ratio of actual output to design capacity, so it measures output as a fraction of ideal facility usage. Efficiency is the ratio of actual output to effective capacity, so it measures output as a fraction of the practical or current limits of the facility.
Learning Objectives
- Absorb the nuances distinguishing design capacity, effective capacity, utilization, and efficiency.
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