Note: This Question Requires the Use of the Queueing Simulator

question 20

Multiple Choice

Note: This question requires the use of the Queueing Simulator spreadsheet in Excel. Use the queueing simulator to simulate a queueing system with 3 servers, uniform interarrival times between 20 and 50 seconds and exponential service times with an average of 75 seconds. Use a simulation run length of 10,000 arrivals. What is the point estimate for the total amount of time a customer will spend in the system?

• A) 75 seconds
• B) 90 seconds
• C) 105 seconds
• D) 120 seconds
• E) 135 seconds

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Definitions:

Total Overhead Cost

The combined indirect costs associated with the normal operations of a business, such as administrative expenses, depreciation, and utilities.

Activity-Based Costing

Activity-based costing is an accounting methodology that assigns costs to products or services based on the activities and resources required to produce them, enhancing cost accuracy.

Product Margin

The profit made from selling a product, calculated by subtracting the cost of manufacturing and selling that product from its sale price.

Machine-Hours

A measure of production time, indicating the hours that machines are in operation.