A Single Bay Car Wash with a Poisson Arrival Rate

question 72

Multiple Choice

A single bay car wash with a Poisson arrival rate and an exponential service time has cars arriving an average of 10 minutes apart, and an average service time of four minutes.The system utilization is:

• A).24
• B).40
• C).67
• D)2.50
• E)none of these

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Definitions:

Equivalent Units

A concept used in cost accounting to express the amount of work done on partially completed goods in terms of fully completed units.

Manufacturing Overhead

Costs, other than direct materials and direct labor costs, that are incurred in the manufacturing process.

Factory Overhead

encompasses all indirect costs associated with manufacturing operations, including utilities, maintenance, and factory manager salaries.

Administrative Expenses

Expenses related to the general operation of a business, such as salaries of executive officers and costs of general services.