1. Week 2 PSA 1C
Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than those other systems?
Another way to put it:
If system A has a higher efficiency ratio than system B, it is always true that system A has a higher utilization ratio than system B?
MIS 373: Basic Operations Management

2. The answer is NO.
Here is a counterexample: system A has a higher efficiency ratio but a lower utilization ratio than system B
System A:
Design capacity: 1000
Effective capacity: 500
Output: 500
System B:
Effective capacity: 900
Output: 600
Efficiency = 500/500 = 1
Utilization = 500/1000 = .5
Efficiency = 600/900 = .67
Utilization = 600/1000 = .6
MIS 373: Basic Operations Management