Exhibit 12.5 The Following Questions Use the Information Below

question 2

True/False

Exhibit 12.5
The following questions use the information below.
The owner of Sal's Italian Restaurant wants to study the growth of his business using simulation. He is interested in simulating the number of customers and the amount ordered by customers each month. He currently serves 1000 customers per month and feels this can vary uniformly between a decrease of as much as 5% and an increase of up to 9%. The bill for each customer is a normally distributed random variable with a mean of $20 and a standard deviation of $5. The average order has been increasing steadily over the years and the owner expects the mean order will increase by 2% per month. You have created the following spreadsheet to simulate the problem.
-The objective in queuing problems is to find the service level that achieves an acceptable balance between the cost of providing service and customer satisfaction.

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Definitions:

Strategy Maps

Visual tools used to communicate the company's strategic objectives and the actions needed to achieve them.

Customer

An individual or business that purchases goods or services produced by a company.

Performance Perspectives

Various angles or aspects from which organizational performance is analyzed and measured, such as financial, customer, operational, and learning and growth perspectives.

Internal Processes

Systems, procedures, and workflows within an organization designed to support its operations, improve efficiency, and meet business objectives.