The manager of Sara James Bakery (see Example S1) now needs to increase production of the increasingly popular Deluxe roll. To meet this demand, she will be adding a second production line. The second line has the same design capacity (201,600) and effective capacity (175,000) as the first line; however, new workers will be operating the second line. Quality problems and other inefficiencies stemming from the inexperienced workers are expected to reduce output on the second line to 130,000 (compared to 148,000 on the first). The utilization and efficiency were 73.4% and 84.6%, respectively, on the first line.

Determine the new utilization and efficiency for the Deluxe roll operation after adding the second line.

APPROACH c First, determine the new design capacity, effective capacity, and actual output after adding the second line. Then, use Equation (S7-1) to determine utilization and Equation (S7-2) to determine efficiency