Assume that customers arrive at a local deli at a rate of 10 per hour on average. It takes an employee on average 4 minutes to complete each customer’s order. Hence, on average they can serve 15 customers per hour. What is the utilization rate of the deli? Be sure to show your calculations to receive full credit. HTML Editor

Assume that customers arrive at a local deli at a rate of 10 per hour on average. It takes an employee on average 4 minutes to complete each customer’s order. Hence, on average they can serve 15 customers per hour. What is the utilization rate of the deli? Be sure to show your calculations to receive full credit. HTML Editor

 

Solution

Utlization rate = Actual output/ potential output

In the given case, actual output = 10 customers per hour

Potential output =