NUMERICAL ON RESOURCE

UTILIZATION
Process Design and Resource Utilization

Utilization (U) =
(Resources Demanded or Used/Resource Availability) * 100

Utilization (U) =
(Demand Rate/(Service Rate * Number of Servers)) * 100
 Problem-1

• If a resource is used 40 hours per week and is

available for use 50 hours per week, how much is the
resource utilized?
 Problem-1: Solution
Given:
• Resource Demanded = 40 hours per week
• Resource Availability = 50 hours per week

• Resource Utilization = U = ????

Resource Utilized
= (Resources Demanded/Resource Availability)*100
= (40 hours per week/50 hours per week)*100
= 80%
Problem-2

• Consider a multiplex movie theatre with 3,000 total seats that is

open 7 days a week from noon to midnight, and 12 hours per day.
The theatre sold 1,400 seats this week. What is the seat
utilization at this theatre?
Problem-2: Solution

Given:
• Resource Demanded = 1,400 seats
𝑠𝑒𝑎𝑡𝑠 12 ℎ𝑜𝑢𝑟𝑠/𝑑𝑎𝑦
• Resource Availability = 3000 × 7 𝑑𝑎𝑦𝑠 ×
𝑑𝑎𝑦 24 ℎ𝑜𝑢𝑟𝑠/𝑑𝑎𝑦

= 10,500 seats
• Seat Utilization = U = ???
U = Resource Demanded/Resource Availability
= (1400 seats/10500 seats )*100
= 13.3 %
Problem-3

• A telephone call center receives 30 calls per hour between 7:00 to

8:00 A.M. and the call center has two service providers on duty,
each of whom can handle 20 calls per hour. How much is the
labour utilization?
Problem-3: Solution

Given:
• Demand Rate = 30 calls per hour
• Number of servers = 2
• Service Rate = 20 calls per hour
• Labour Utilization = ?????

• Labour Utilization = (Demand Rate/(Service Rate * Number of Servers))*100

= (30 calls per hour/(20 calls per hour * 2))*100
= 75%
Problem-4

• A telephone call center receives 30 calls per hour between 7:00 to

8:00 A.M. and the call center has one service providers on duty,
each of whom can handle 20 calls per hour. How much is the
labour utilization?
Problem-4: Solution

Given:
• Demand Rate = 30 calls per hour
• Number of servers = 1
• Service Rate = 20 calls per hour
• Labour Utilization = ?????

• Labour Utilization = (Demand Rate/(Service Rate * Number of Servers))*100

= (30 calls per hour/(20 calls per hour * 1))*100
= 150%
Problem-5

• What would be the maximum demand a telephone call center can

handle if the target utilization was 80 percent, the call center has
two service providers on duty between 7 and 8 A.M., each of
whom can handle 20 calls per hour ?
Problem-5: Solution

Given:
• Demand Rate = ????
• Number of servers = 2
• Service Rate = 20 calls per hour
• Labour Utilization = 80%

• Labour Utilization = (Demand Rate/(Service Rate * Number of Servers))*100

80 = (Demand Rate/(20 calls per hour * 2))*100
Demand Rate = (80/100)*(20 calls per hour * 2) = 32 calls per hour
Problem-6
Problem-6: Solution
Problem-7

??????
Problem-7: Solution
 Problem-7: Solution

Resource Utilization
= (20 orders per hour/((60 minutes per hour/12 minutes per order) * 1 chef)) * 100
= 400%

If Resource Utilization is 100 %, how many chefs required?

100 = (20 orders per hour/((60 minutes per hour/12 minutes per order) * Number of
chefs)) * 100
Number of Chefs = 20 orders per hour/5 orders per hour
= 4 chefs
 Problem-7: Solution

Revised Resource Utilization

Resource: CHEFS

Resource Utilization (Activity #1)

= (20 orders per hour/((60 minutes per hour/1 minutes per order) * 4 chefs)) * 100
= 8.33 %

Resource Utilization (Activity #2)

= (20 orders per hour/((60 minutes per hour/4 minutes per order) * 4 chefs)) * 100
= 33.33 %
 Problem-7: Solution

Revised Resource Utilization

Resource Utilization (Activity #3)
= (20 orders per hour/((60 minutes per hour/12 minutes per order) * 4 chefs)) * 100
= 100 %

Resource Utilization (Activity #5)

= (20 orders per hour/((60 minutes per hour/3 minutes per order) * 4 chefs)) * 100
= 25 %
 Problem-7: Solution

Revised Resource Utilization

 Problem-7: Solution
Revised Resource Utilization
Resource: OVENS
Resource Utilization (Activity #4)
= (20 orders per hour/((60 minutes per hour/10 minutes per order) * 2 ovens)) * 100
= 166.66 %
If Resource Utilization is 100%, determine how many ovens required.
Resource Utilization = (20 orders per hour/((60 minutes per hour/10 minutes per order) * Number of
ovens)) * 100
100 = (20 orders per hour/((60 minutes per hour/10 minutes per order) * Number of ovens)) * 100
Number of Ovens = (20 orders per hour/(60 minutes per hour/10 minutes per order)
= 3.33 ovens ~ 4 ovens
 Problem-7: Solution

Revised Resource Utilization (Activity #4)

= (20 orders per hour/((60 minutes per hour/10 minutes per order) * 4
ovens)) * 100
= 83.33 %
 Problem-7: Solution

Revised Resource Utilization

References

• Mahadevan, B. Operations Management: Theory and Practice, Pearson

Education, Second Edition.

• James R Evans and David A Collier, Operations Management : Concepts,

Techniques, and Applications, Cengage Learning.