Utilization will always be lower than efficiency because:

A$)$ effective capacity is less than design capacity.

B$)$ effective capacity is greater than design capacity.

QANT $300-$A Operations Management Midterm $-$Spring$-2024$

$(2$ points each$)$

C$)$ effective capacity equals design capacity.

D$)$ expected output is less than actual output.

E$)$ expected output is less than rated capacity.