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Operational Efficiency and Utilization

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Southeastern Oklahoma State University's business program has the facilities and faculty to handle an enrolment of 2,000 new students per semester. However, in an effort to limit class sizes to a "reasonable" level (under 200, generally), Southeaster's dean, Holly Lutze, placed a ceiling on enrolment of 1,500 new students. Although there was ample demand for business courses last semester, conflicting schedules allowed only 1,450 new students to take business courses. What are the utilization and efficiency of this system?

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Solution Summary

The solution uses the example of Southeaster Oklahoma State University's business program to determine the utilization and efficiency of the output and capacity.

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Question:
Southeastern Oklahoma State University's business program has the facilities and faculty to handle an enrollment of 2,000 new students per semester. However, in an effort to limit class sizes to a "reasonable" level (under 200, generally), Southeaster's dean, Holly Lutze, placed a ceiling on enrollment of 1,500 new students. ...

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