Question
8. An agent serves a customer for 5 minutes on average, and the standard deviation of the processing time is 1.2 minutes. The demand rate
8. An agent serves a customer for 5 minutes on average, and the standard deviation of the processing time is 1.2 minutes. The demand rate is 10 customers/hour, and the coefficient of variation of the arrival process is 0.3. Assume that there is only one agent in the office. What is the average waiting time for a customer?
A. 4.167 minutes
B. 6.75 minutes
C. 1.845 minutes
D. 2.214 minutes
9. John sells 300 packs of candies per week at $40 per pack. The candies are ordered from a supplier who charges John $60 per order and $20 per pack. John's annual holding cost percentage is 20%. Assume John operates 50 weeks a year. What is John's total ordering + holding cost per year if John orders 240 packs at a time?
A. $4,230
B. $5,190
C. $3,790
D. $2,700
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