For a Single Server, Single Queue System with an Arrival

question 81

Multiple Choice

For a single server, single queue system with an arrival rate of 8 customers per hour and a service rate of 10 customers per hour, what is the mean number of customers in the queue (to two decimal places) ?

• A) 2.00
• B) 4.00
• C) 3.20
• D) Cannot be determined from the information given

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Definitions:

Safety Stock

Additional inventory kept in reserve to protect against stockouts due to variability in demand or supply.

Reorder Point

The inventory level at which a new order should be placed to replenish stock before it runs out.

Quantity Discounts

Price reductions offered to buyers who purchase goods or services in large volumes, incentivizing bulk purchases and increasing overall sales.

Cost-Minimizing Order Quantity

The optimal amount of inventory an entity should purchase to minimize total costs including holding, ordering, and shortage costs.