A Multiple Server Queuing System Has a Poisson Arrival Rate

question 6

Multiple Choice

A multiple server queuing system has a Poisson arrival rate of 9 per hour and exponential service time averaging 5 per hour.Server cost is $100 per hour and the cost of waiting is $360 per hour.Based on total cost,how many servers should be staffed?

• A)2
• B)3
• C)4
• D)5
• E)6

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Definitions:

Overapplied

A situation in accounting where the allocated manufacturing overhead cost is more than the actual overhead incurred.

Manufacturing Overhead

Indirect costs attributed to the production process, including costs associated with maintaining the manufacturing facilities.

Overapplied

A situation where the allocated or applied costs in cost accounting exceed the actual costs incurred.

Underapplied

A term used in accounting when the allocated costs are less than the actual costs incurred.