Little's Law Is Not Applicable in Which of the Following

question 84

Multiple Choice

Little's Law is not applicable in which of the following situations?

• A)the opening of a toy store on Black Friday morning
• B)a 24-hour supermarket
• C)a gas station with 24-hour self-service pumps
• D)B and C
• E)It is applicable to A,B,and C.

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Definitions:

Forward Contract

A financial agreement between two parties to buy or sell an asset at a specified future time at a price agreed upon today, not traded on an exchange.

Purchase Order

A formal document issued by a buyer to a seller, authorizing the purchase of goods or services as specified at agreed-upon terms.

Fair-Value Hedge

A hedge that protects against changes in the fair value of an asset, liability, or firm commitment that is attributable to a particular risk.

Forward Contract

A derivative financial instrument where two parties agree to buy or sell an asset at a predetermined future date and price.