Which of the following statement is false?
A) Throughput rate is always smaller than or equal to the capacity
B) Customers may wait even if the utilization rate of the service process is smaller than 100%
C) Bottleneck resource(s) always has 100% utilization rate
D) Increasing WIP may increase utilization rate
E) None of the above
Expert Answer
C) Bottleneck resource(s) always has 100% utilization rate
It has a demand requirement greater than its capacity and limits the output capacity of hte complete system. The bottleneck has the highest implied utilization.