Customers Arrive at a Suburban Ticket Outlet at the Rate

question 22

Multiple Choice

Customers arrive at a suburban ticket outlet at the rate of 14 per hour on Monday mornings (exponential interarrival times) . Selling the tickets and providing general information takes an average of 3 minutes per customer, and varies exponentially. There is 1 ticket agent on duty on Mondays.
What is the system utilization?

• A) 0.6
• B) 0.7
• C) 0.8
• D) 0.9
• E) 1

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Definitions:

Vendor Managed Inventory (VMI)

A supply chain initiative where the supplier assumes the responsibility of managing inventory levels for the customer.

Outsourcing

The business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company's own employees and staff.

Holding Cost Rate

The percentage of the value of inventory held over a certain period of time as costs, including storage, insurance, and depreciation.

Economical

Characterized by efficiency and avoidance of waste, referring to the cost-effective allocation and use of resources.