Question: 5 . 2 . Using the information provided below to answer the following questions. INFORMATION Gqeberha Auto Repairs ( GAR ) operates a service and

5.2. Using the information provided below to answer the following questions.
INFORMATION
Gqeberha Auto Repairs (GAR) operates a service and maintenance workshop within the CBD precinct of
Gqeberha, the seat of the Nelson Mandela Bay Metropolitan Municipality, South Africa. As part of a
planned shift from a low-cost strategy to a response strategy, the workshop manager would like to
determine the workshops current capacity efficiency and effective utilisation.
The following information about the workshop has been validated:
The workshop has a designed capacity of 100 cars per month.
Effective capacity of the workshop is 90 cars per month.
Current backlog in the system is 15 cars per month.
Actual output is 70 cars per month.
Expected capacity has averaged 88 cars for the past few months.
Capacity in the system is 20 cars per month.
REQUIRED:
Based on the information provided above, answer the following questions:
5.2.1. Calculate the workshop's capacity efficiency and interpret the result obtained within the context of
the transition to a response strategy.
(3 Marks)
5.2.2. Calculate the effective utilisation of the workshop and interpret the result obtained within the context
of the transition to a response strategy.

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