a. A loan processing operation that processes an average of 4 loans per day. The operation has a design capacity of 12 loans per day and an effective capacity of 11 loans per day. (Round your answer to 1 decimal place. Omit the "%" sign in your response.)

Efficiency = 36.36%

Utilization = 33.33%

Explanation:

The question is to determine the efficiency and the utilization for each of the situations as follows:

First, we need to understand the formula to be used for efficiency and then for utilization.

Efficiency formula = (The Actual Output / Effective Capacity) x 100

Utilization Formula = (The Actula Output / Design Capacity) x 100

Secondly, we apply the formulas as follows:

Efficiency = Average Loans per day (4) / Effective Capacity (11) x 100

= 4/11 x 100 = 36.36%

Utilization = The average output (4) / Design Capacity (12) x 100

=4/12 x 100 = 33.33%