It's a Beautiful Sunny Day After a Week of Rainy

question 33

Essay

It's a beautiful sunny day after a week of rainy weather and both of the local car washes are busy. One car wash is fully automated, touchless, and can wash a vehicle of any size to a dazzling luster in 5 minutes flat. The other car wash is a fund raiser staffed by eager amateurs that work on one car at a time and can finish it in about 4 minutes (their time is governed by the Poisson distribution). Customer arrivals at both car washes are Poisson distributed with a mean of 10 per hour. How long does it take the average customer to work his way through either system? How many customers are in the systems on average?

Understand the strategic importance of supply-chain management and its impact on the global success of a business.

Recognize the benefits and challenges of developing long-term relationships with suppliers.

Identify key strategies in supply-chain management including many-suppliers, few suppliers, vertical integration, and keiretsus.

Comprehend the significance of make-or-buy decisions in a firm's supply-chain strategy.

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Definitions:

Economic Swings

Refers to the fluctuations in economic activity over time, including periods of economic expansion and contraction.

Supply Shortages

A situation where the demand for a product or service exceeds the available supply, often leading to increased prices and scarcity.

Price Increases

A rise in the cost of goods or services, often due to factors like inflation, increased production costs, or higher demand.

Local Nuances

Pertains to the subtle and specific features or variations within a local context or culture, often crucial for understanding and operating effectively within that locale.