In Chapter 17, we explore the impact of variability and inflexibility on process performance. Two consequences of these system inhibitors are discussed: loss of demand and loss of capacity.

Using the Erlang loss model, explain the value of economies of scale, pooling, and buffers in service with impatient customers.When completing this project, answer the following questions in specific detail:

1)What is the Erlang loss model? Provide an overview/summary of how the model works.

2)Explain how the Erlang loss model affects/impacts lost demand.

3)Describe the relationship between implied utilization and utilization according to the Erlang loss model.

4)Summarize the benefit of reducing the variability of processing time within the Erlang loss model.