Explain target utilization rate, Operation Management

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The process for renewing a driver's license at the Archer County Courthouse is as follows. First, the clerk fills out the application; then the clerk takes the driver's picture; and finally the typist types and processes the new license. It takes an average of five minutes to fill out an application, one minute to take a picture, and seven minutes to type and process the new license. a. If there are two clerks and three typists, where will the bottleneck in the system be? How many drivers can be processed in one hour if the clerks and typists work at 80 percent utilization rate? b. If 40 drivers are to be processed each hour, how many clerks and typists should be hired assuming a 80 percent target utilization rate?


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