Customers Are Serviced at a Rate of Five Customers Per

question 39

Multiple Choice

Customers are serviced at a rate of five customers per hour according to an exponential distribution. What is the probability that customer service will require fewer than 20 minutes?

• A) less than or equal to 0.75
• B) greater than 0.75 but less than or equal to 0.80
• C) greater than 0.80 but less than or equal to 0.85
• D) greater than 0.85

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Definitions:

External Failure Cost

Costs incurred when a product or service fails to meet quality standards after it is delivered to the customer, including returns, repairs, and warranty claims.

Non-Value-Added

Activities or processes that do not add any significant value to the final product or service from the customer's perspective.

Value-Added Ratio

The ratio of the value-added lead time to the total lead time.

External Failure Cost

Costs incurred when products or services fail to meet quality standards after being delivered to the customer, including returns, repairs, and lost sales.