There Are Three Consecutive Steps in a Customer Service Process

question 17

Multiple Choice

There are three consecutive steps in a customer service process.The first two steps are each capable of serving 25 customers per hour while the third step can process only 20 customers per hour.Which of the following statements regarding this system is true?

• A)The entire system is capable of processing 25 customers per hour.
• B)There are floating bottlenecks in the system.
• C)If the first two steps are run at full capacity,then the third step has a waiting line.
• D)The first and second steps are bottlenecks for the system.

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Definitions:

Rationing Mechanism

A system used to allocate scarce goods and services using criteria other than price.

Surplus

An excess of supply over demand, resulting in an accumulation of unsold products or unused resources.

Equilibrium Price

The cost at which the amount of a product or service that consumers want to buy matches the amount that producers are willing to sell, resulting in a balanced market situation.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price over a specific period.