Four of the Most Widely Used Waiting Line Models-M/M/1 or A

question 45

True/False

Four of the most widely used waiting line models-M/M/1 or A, M/M/S or B, M/D/1 or C, and Finite population or D-all share three characteristics: Poisson arrivals, FIFO discipline, and exponential service times.

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Operating Income

Income generated from regular business operations, excluding expenses like interest and taxes.

Margin of Safety

The difference between actual sales and the break-even point, used to assess the risk of loss from declining sales.

Fixed Costs

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance premiums.

Variable Costs

Expenses that change in proportion to the amount of goods produced or the volume of sales, including labor and materials.