A Bank Is Designing a New Branch Office and Needs

question 14

Multiple Choice

A bank is designing a new branch office and needs to determine how much driveway space to allow for cars waiting for drive-up teller service. The drive-up service will have three tellers and a single waiting line. At another branch of the bank in a similar setting, the average service time for drive-up tellers is four minutes per customer, and average arrival rate is 36 customers per hour. It is expected that the new bank will have similar characteristics.
How many spaces should be provided to have a 96 percent probability of accommodating all of the waiting cars?

• A)10
• B)11
• C)12
• D)13
• E)14

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Definitions:

Finishing Department

The last phase in the manufacturing process where products are completed, polished, inspected, and prepared for sale or shipment.

First-In, First-Out

An inventory valuation method where the goods first purchased or produced are the first ones sold, assuming that older inventory is used up first.

Equivalent Units

A concept in cost accounting used to allocate costs to mass-produced items that are not identical, allowing for the calculation of per-unit costs at various stages of production.

Conversion Cost

The total cost of converting raw materials into finished goods, comprising both direct labor costs and manufacturing overhead costs.