Figure 6S-1
Customers Enter a Haberdashery That Sells Only Ascots

question 29

Multiple Choice

Figure 6S-1
Customers enter a haberdashery that sells only ascots, cufflinks and suspenders and are served by the owner operator. The owner is the only employee, so if customer B arrives while customer A is being served, customer B must patiently wait until customer A exits the system. Customers are always willing to wait regardless of how long their wait is. The interarrival and service times are uniformly distributed and shown in the table below.
$$\begin{array} { | c | c | c | } \hline \text { Range } & \text { Interarrival (min) } & \text { Service (min) } \\\hline 0.000 - 0.200 & 3 & 6 \\\hline 0.201 - 0.400 & 6 & 7 \\\hline 0.401 - 0.600 & 9 & 8 \\\hline 0.601 - 0.800 & 12 & 9 \\\hline 0.801 - 1.000 & 15 & 10 \\\hline\end{array}$$ The stream of random number for a Monte Carlo simulation of the system appear in this table>
$$\begin{array} { | c | c | } \hline \text { Interarrival } & \text { Service } \\\hline .114 & .979 \\\hline .899 & .297 \\\hline .925 & .162 \\\hline .085 & .574 \\\hline .824 & .235 \\\hline .151 & .593 \\\hline .223 & .956 \\\hline .477 & .845 \\\hline\end{array}$$
-Use the data from Figure 6S-1. What is the total time that customers must wait from 8:00 am to 9:15 am?

• A)17 minutes
• B)18 minutes
• C)19 minutes
• D)20 minutes

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Definitions:

Standard Quantity

The budgeted or pre-determined amount of material or input expected to be used during a manufacturing process.

Standard Hours Allowed

The time that should have been taken to complete the period’s output. It is computed by multiplying the actual number of units produced by the standard hours per unit.

Material Price Variances

The difference between the expected cost of materials and the actual cost incurred, useful in budgeting and cost management.

Labor Efficiency Variance

A measure used in cost accounting to gauge the difference between the actual hours taken to produce a good or service and the standard hours expected, multiplied by the standard labor rate.