Production and Operations Analysis, Seventh Edition
Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 7.2, Problem 10P
Summary Introduction

Interpretation: Concept of utilization in operation management has been discussed.

Concept Introduction: Utilization say us, how effectively resources is being used. Suppose machine runs non-stop, it can produce 5000 widgets a day. That's the machine’s total available capacity. But of course, it can't run non-stop throughout day. Machine require to shut down sometimes for maintenance and repairs, user training, and any number of other reasons. This means it will never make as many widgets as it's capable of producing.

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What does a utilization of greater than one mean in practice?
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