At the Order Fulfillment Centre of a Major Mail-Order Firm

question 100

Essay

At the order fulfillment centre of a major mail-order firm, customer orders, already packaged for shipment, arrive at the sorting machine to be sorted for loading onto the appropriate truck for the parcel's address. The arrival rate at the sorting machine is at the rate of 140 per hour following a Poisson distribution. The machine sorts at the constant rate of 150 per hour.
a. What is the utilization rate of the system?
b. What is the average number of packages waiting to be sorted?
c. What is the average number of packages in the sorting system?
d. How long must the average package wait until it gets sorted?

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Definitions:

Objectives

Objectives are specific, measurable goals that organizations or individuals aim to achieve within a certain timeframe.

End States

The final outcomes or conditions that are achieved after the completion of processes or actions.

Fixed Budget

A predetermined limitation on spending, beyond which expenses cannot exceed for a specific period.

Single Estimate

An approach in project management or forecasting where a single value is used as the most likely outcome without accounting for uncertainty.