Question: ConsideranMIMI1Iooqueueforwhich.A = 1andfl = 3. Everycustomer going through the system pays an amount $15, but costs the system $6 per unit time it spends in

ConsideranMIMI1Iooqueueforwhich.A = 1andfl = 3. Everycustomer going through the system pays an amount $15, but costs the system $6 per unit time it spends in the system.

(a) What is the average profit rate of this system?

(b) A bright young OR analyst from a prestigious middle Atlantic state university tells management that the profit can be increased by shutting off the queue at a certain point, that is, by preventing customers from entering whenever the queue gets to a certain size. Do you agree, and if so, what is the optimal point at which to prevent arrivals from joining?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Theory of Statistics Questions!

Consider an M/M/1/ queue for which = 1 and = 3. Every customer going through the system pays an amount $15, but costs the system $6 per unit time it spends in the system. (a) What is the average...

Question 5 (1 point) At the farmer's market in Irvine, California, the price of avocados is set at $3 each. At that price, 120 avocados are supplied but only 100 are purchased. Represent this on a...

IOE 419 Mark S. Daskin Service Operations Management IOE Department Winter, 2017 University of Michigan Problem set 4 DUE: MONDAY - February 20, 2017 Points: 100 points total Problem 1: Babette has...

Problem 1 (10 points) New Yorkers rely on the Hudson River for a large share of their drinking water. As such they like the water to be clean and free of toxins and incur significant costs for...

its sharing clear for me on all slides. is there somethjng upu suggest i do to clear the images This is adapted from a 2014 AICPA Accounting Competition in Management Accounting Stage One A history...

I would like have the answers for questions 65 - 130 ACCA 310 FALL 2015 ASSIGNMENT QUIZ CHAPTERS 7 TO 10 Multiple Choice: 1. The financial budget includes a. only the capital budget and the cash...

HI, I ONLY NEED STAGE 2: Questions 1,2, and 3 answered! Thank You! Stage One A history of Humble Pies Humble Pies, Inc. is the genius of childhood neighbors and best friends Linda Jackson and Taylor...

QUESTION 1 1.Management reports are 1. used for decision making both inside and outside the organisation 2. used by financial analysts 3. used for decision making primarily outside the organisation...

Store Front Sales The remaining dough tubs are delivered to each of the three storefront sites by refrigerated truck. Once the dough reaches the three bakeries, the bakers add mix-ins to create a...

This is adapted from a 2014 AICPA Accounting Competition in Management Accounting All characters and company information and names in this case document are fictitious. Any resemblance to real person...

[The following information applies to the questions displayed below.) Following is financial information describing the six operating segments that make up Fairfield, Inc. (in thousands): Segments...

a. Johnson Shoe Company orders mens shoes at a buyers meeting in New York City. Because the shoe is designed for spring and summer months, it cannot be expected to sell in the fall. Johnson plans to...

PART B Zeni Limited ( ' Zeni ' ) purchased 1 2 0 refrigerators for resale. The supplier agreed to supply the refrigerators at R 1 0 0 0 0 per unit. The supplier grants a \ ( 5 \ % \ ) early...

A company has a strange policy: It sells inexpensive boots, but it only ships one boot at a time, and it does not tell the buyer whether he will receive a left or right boot (hence, the need to sell...