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

question 15

Essay

At the order fulfillment center 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:

Lag Indicator

A measurement indicating the results of actions already taken, reflecting outcomes from previous strategies or performance.

Customer Satisfaction Rating

A measure used to quantify the degree to which a customer is happy with a product, service, or experience.

Sales Growth

The percentage increase in sales over a specified period, indicating the performance and expansion of a company's sales activities.

Customer Complaints

Expressions of dissatisfaction or issues raised by customers regarding a product or service.