How Many Computer Repair Troubleshooters Should Be on Duty from 8:00

question 85

Multiple Choice

How many computer repair troubleshooters should be on duty from 8:00 p.m. to midnight if total demand during that period is 15 calls? The service rate is five (5) calls per hour and the target utilization is 90%.

• A) Two
• B) Three
• C) Four
• D) Five

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Definitions:

Shortage Costs

Costs incurred as a result of insufficient inventory, including potential lost sales, backorder handling, and decreased customer satisfaction.

Carrying Costs

The total cost of holding inventory, including storage, maintenance, insurance, and opportunity costs.

Opportunity Cost

The foregone benefit that could have been obtained from an option not chosen.

Inventory Holding

The costs associated with storing unsold goods, including warehousing, insurance, and depreciation.