With a Finite-Source Model, Increasing the Arrival Rate by 10

question 99

Multiple Choice

With a finite-source model, increasing the arrival rate by 10 percent and also increasing the service rate by 10 percent will result in:

• A) a decrease in the utilization of the server.
• B) no change in the average number of customers in the system.
• C) an increase in the average number of customers in the waiting line.
• D) an increase in the waiting time in line.

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Definitions:

Lower-of-Cost-or-Market

An accounting principle that mandates inventory be recorded at the lower between its historical cost and current market value.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.

Inventory Quantity

The amount of merchandise, raw materials, work-in-progress, and finished goods that a company holds at any given point in time.

Days' Sales

A financial metric that calculates the average time it takes for a company to convert its inventory into sales.