1A)

B)

Hoosier Manufacturing operates a production shop that is designed to have the lowest unit production cost at an output rate of 155 units per hour . In the month of July, the company operated the production line for a total of 285 hours and produced 33,400 units of output What was its capacity utilization rate for the month? (Round your answer to 1 decimal place.) Capacity utilization rate % Owners of a local restaurant are concerned about their ability to provide quality service as they continue to grow and attract more customers. They have collected data from Friday and Saturday nights, their busiest times of the week. During these time periods, about 106 customers arrive per hour for service. Given the number of tables and chairs, and the typical time it takes to serve a customer, the owners estimate they can serve, on average, about 162 customers per hour. Use Exhibit 5.6. During these nights, are they in the zone of service, the critical zone, or the zone of nonservice? Critical zone zone of service Zone of nonservice Connec exhibit 5.6 Relationship between the Rate of Service Utilization (p) and Service Quality 100% Zone of nonservice (-). Critical zone p - 70% Mean arrival rate () Zone of service Mean service rate () Source: J. Haywood-Farmer and J. Nollet, Services Plus: Effective Service Management (Boucherville, Quebec, Canada: G. Morin Publisher Ltd. 1991), p. 59