# ch09 - Chapter 9 Problem 2: ActualOutput 950 (100%) =...

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Chapter 9 Problem 2: Utilization Effective = apacity EffectiveC ut ActualOutp (100%) = 700 950 (100%) = 135.7% Utilization Design = city DesignCapa ut ActualOutp (100%) = 1000 950 (100%) = 95% The utilization rates show that the facility’s current output is slightly below its design capacity and considerably higher than its effective capacity. The facility can probably operate at the effective level for only a short time. Problem 4: Effective capacity = 35 customers/day Design capacity = 80 customers/day Problem 6: Utilization Effective = apacity EffectiveC ut ActualOutp (100%) = 260 250 (100%) = 96.2% Utilization Design = city DesignCapa ut ActualOutp (100%) = 300 250 (100%) = 83.3% The utilization rates show that the facility’s current output is below its design and effective capacities. Problem 8: a. Low Demand (0.30) \$50,000 Large High Demand (0.70) \$80,000 Low Demand (0.30) \$40,000 Small Expand \$50,000 High Demand (0.70)

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b. EV small expansion = 50,000(0.70) + 40,000(0.30) = \$47,000
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## This note was uploaded on 06/12/2011 for the course MNGT 368 taught by Professor Curthurds during the Spring '08 term at Nicholls State.

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ch09 - Chapter 9 Problem 2: ActualOutput 950 (100%) =...

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