For each of the following statements/questions, check whether it is true or false and justify your answer in a couple of sentences, or respond to the question in a couple of sentences. Note that your answer will not be evaluated if you do not provide a justification. (each question is worth 4 points)

1. The theoretical flow time is always bigger than the cycle time. (True or False. Explain.)

2. What is the Product-Process Matrix? What type of process would be appropriate for a small bakery run by its owners that bakes custom made birthday cakes but also sells typical bakes (such as scones, muffins and bread)?

3. Consider a system with one buffer, one server, and with inter-arrival and service times following exponential distributions. In addition, suppose that the utilization rate is p = 0.9, and that you are asked to reduce it to p = 0.8 by either decreasing the arrival rate lamda or by increasing the service rate mu. If your goal is to decrease the average wait time in the queue, which option is better?

4. Suppose that the LCL and UCL are 20 and 40, respectively. In addition, suppose that the mean and standard deviation of your process are 25 and 5, respectively. What can you do to achieve 3-sigma service?

5. A variable with higher variance always has a higher coefficient of variation. (True or False. Explain.)