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19 January, 11:17

Run Scenario 1 using the following inputs: Inter-arrival time = 5 hours, mean length of stay = 16 hours, standard deviation of inter-arrival time = 2 hours, standard deviation of length of stay = 4 hours. Using the equation for theoretical utilization (demand / capacity), what is the theoretical utilization?

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  1. 19 January, 14:50
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    80%

    Explanation:

    The capacity utilization rate evaluate the proportion of potential economic output that is actually realized.

    To solve for theoretical utilization, we use the following formula as given below;

    Theoretical Utilization = {p / (ma) }*100

    Where we have our variables as,

    p=16

    m=4

    a=5

    Imputing variables into the formula we have

    Theoretical utilization = {16: (4*5) }*100

    = {16/20}*100

    =0.8*100

    =80%
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