A Single-Server Queueing System Has an Average Service Time of 16

question 16

Multiple Choice

A single-server queueing system has an average service time of 16 minutes per customer, which is exponentially distributed. The manager is thinking of converting to a system with a constant service time of 16 minutes. The arrival rate will remain the same. The effect will be to:

• A) increase the utilization factor.
• B) decrease the utilization factor.
• C) increase the average waiting time.
• D) decrease the average waiting time.
• E) not have any effect since the service time is unchanged.

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Definitions:

Expected Rate of Return

The anticipated amount of profit or loss from an investment, considering the potential risks and rewards.

Interest Rate

The percentage at which interest is charged or paid on a loan or investment over a specific period of time.

Normal Profit

The profit level that allows a business to cover its costs, including the opportunity cost of capital, without making an economic profit.

Economic Cost

The total cost of choosing one action over another, including both explicit costs (direct payments) and implicit costs (opportunity costs).