Odell's Furniture has a manufacturing facility in Rigby, Idaho that has an effective capacity of 133 furniture pieces per day and produces 113 furniture pieces per day. Their design capacity is 140 units per day.What is the facility's efficiency rate? Write your answer as a percentage.Display your answer to two decimal places. %What is the facility's utilization rate? Write your answer as a percentage.Display your answer to two decimal places. %
Question
Odell's Furniture has a manufacturing facility in Rigby, Idaho that has an effective capacity of 133 furniture pieces per day and produces 113 furniture pieces per day. Their design capacity is 140 units per day.What is the facility's efficiency rate? Write your answer as a percentage.Display your answer to two decimal places. %What is the facility's utilization rate? Write your answer as a percentage.Display your answer to two decimal places. %
Solution
To calculate the efficiency rate, we use the formula:
Efficiency = (Actual output / Effective capacity) * 100%
Substituting the given values:
Efficiency = (113 furniture pieces / 133 furniture pieces) * 100% = 84.96%
So, the facility's efficiency rate is 84.96%.
To calculate the utilization rate, we use the formula:
Utilization = (Actual output / Design capacity) * 100%
Substituting the given values:
Utilization = (113 furniture pieces / 140 furniture pieces) * 100% = 80.71%
So, the facility's utilization rate is 80.71%.
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