Twelve Customers Arrive at the Lunch Counter at George's Happy

question 30

Multiple Choice

Twelve customers arrive at the lunch counter at George's Happy Hog per hour and select the hickory smoked meat du jour along with a side and soda for $5. The server doubles as the cashier and can take and fill an order in three minutes on average. What is the likelihood that there are two customers in the system at the George's Happy Hog if the times can be assumed as exponentially distributed?

• A) .33
• B) .25
• C) .144
• D) .05

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Definitions:

Bullwhip Effect

A phenomenon in supply chains where small fluctuations in demand at the retail level cause progressively larger fluctuations in demand upstream, often leading to inefficiency and increased costs.

Lot Sizes

The quantity of goods processed, produced, purchased, or delivered in a single batch or order, affecting manufacturing efficiency and inventory management.

Operational Improvements

Enhancements or optimizations made to the processes and procedures of an organization to increase efficacy, efficiency, and overall performance.

Transportation Costs

Expenses incurred in moving goods from one location to another, including freight charges, fuel costs, and maintenance.