The system utilization rate. Introduction: System utilization refers to percentage amount of capacity which is utilized or we can say that actual output is divided by potential output. It is operational metric for business which indicates aggregate productive capacity. It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

Question

The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $30 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan B: Vary the workforce to produce the prior month's demand. Demand was 1,300 units in June. The cost of hiring additional workers is $35 per unit produced. The cost of layoffs is $60 per unit cut back. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change (i.e., going from production of 1,300 in July to 1300 in August requires a layoff (and related costs) of 0 units in August). Hire Month 1 July Demand 1300 Production (Units) Layoff (Units) Ending Inventory Stockouts (Units) 2 August 1150 3 September 1100 4 October 1600 5 November 1900 6 December 1900

Answer 1

Question

Chapter 18, Problem 1P

a)

1)

Summary Introduction

To determine: The system utilization rate.

Introduction: System utilization refers to percentage amount of capacity which is utilized or we can say that actual output is divided by potential output. It is operational metric for business which indicates aggregate productive capacity.

It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

1)

Summary Introduction

To determine: The system utilization rate.

Introduction: System utilization refers to percentage amount of capacity which is utilized or we can say that actual output is divided by potential output. It is operational metric for business which indicates aggregate productive capacity.

It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

2)

Summary Introduction

To determine: The average number customers waiting for service in line.

3)

Summary Introduction

To determine: Average number of customers waiting time.

b)

1)

Summary Introduction

To determine: The average number of customer waiting for repairs.

1)

Summary Introduction

To determine: The average number of customer waiting for repairs.

2)

Summary Introduction

To determine: The system utilization rate.

Introduction: It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

3)

Summary Introduction

To determine: The idle time.

4)

Summary Introduction

To determine: Probability of two or more customers in the system.

c)

1)

Summary Introduction

To determine: The system utilization rate.

1)

Summary Introduction

To determine: The system utilization rate.

2)

Summary Introduction

To determine: Average number of customers in the system (L_s).

3)

Summary Introduction

To determine: Average time customers wait in line for service (W_q).

4)

Summary Introduction

To determine: The average waiting time for an arrival not immediately served (hours) (W_a).

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The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $30 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan B: Vary the workforce to produce the prior month's demand. Demand was 1,300 units in June. The cost of hiring additional workers is $35 per unit produced. The cost of layoffs is $60 per unit cut back. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change (i.e., going from production of 1,300 in July to 1300 in August requires a layoff (and related costs) of 0 units in August). Hire Month 1 July Demand 1300 Production (Units) Layoff (Units) Ending Inventory Stockouts (Units) 2 August 1150 3 September 1100 4 October 1600 5 November 1900 6 December 1900

The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $100 per unit, inventory carrying costs of $20 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,100 units per month and subcontract additional units at a $65 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers). Ending Month Demand Production Inventory Subcontract (Units) 1 July 1300 1,100 0 2 August 1150 1,100 0 3 September 1100 1,100 0 4 October 1600 1,100 0 5 November 1900 1,100 0 6 December 1200 1,100 0

Please help me expand upon my research even more in detail please. Need help added more to mine from the photos please. Not sure what more I can add.

Answer 2

Question

Chapter 18, Problem 1P

a)

1)

Summary Introduction

To determine: The system utilization rate.

Introduction: System utilization refers to percentage amount of capacity which is utilized or we can say that actual output is divided by potential output. It is operational metric for business which indicates aggregate productive capacity.

It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

1)

Summary Introduction

To determine: The system utilization rate.

Introduction: System utilization refers to percentage amount of capacity which is utilized or we can say that actual output is divided by potential output. It is operational metric for business which indicates aggregate productive capacity.

It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

2)

Summary Introduction

To determine: The average number customers waiting for service in line.

3)

Summary Introduction

To determine: Average number of customers waiting time.

b)

1)

Summary Introduction

To determine: The average number of customer waiting for repairs.

1)

Summary Introduction

To determine: The average number of customer waiting for repairs.

2)

Summary Introduction

To determine: The system utilization rate.

Introduction: It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

3)

Summary Introduction

To determine: The idle time.

4)

Summary Introduction

To determine: Probability of two or more customers in the system.

c)

1)

Summary Introduction

To determine: The system utilization rate.

1)

Summary Introduction

To determine: The system utilization rate.

2)

Summary Introduction

To determine: Average number of customers in the system (L_s).

3)

Summary Introduction

To determine: Average time customers wait in line for service (W_q).

4)

Summary Introduction

To determine: The average waiting time for an arrival not immediately served (hours) (W_a).

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The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $30 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan B: Vary the workforce to produce the prior month's demand. Demand was 1,300 units in June. The cost of hiring additional workers is $35 per unit produced. The cost of layoffs is $60 per unit cut back. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change (i.e., going from production of 1,300 in July to 1300 in August requires a layoff (and related costs) of 0 units in August). Hire Month 1 July Demand 1300 Production (Units) Layoff (Units) Ending Inventory Stockouts (Units) 2 August 1150 3 September 1100 4 October 1600 5 November 1900 6 December 1900

The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $100 per unit, inventory carrying costs of $20 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,100 units per month and subcontract additional units at a $65 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers). Ending Month Demand Production Inventory Subcontract (Units) 1 July 1300 1,100 0 2 August 1150 1,100 0 3 September 1100 1,100 0 4 October 1600 1,100 0 5 November 1900 1,100 0 6 December 1200 1,100 0

Please help me expand upon my research even more in detail please. Need help added more to mine from the photos please. Not sure what more I can add.

Answer 3

Question

Chapter 18, Problem 1P

a)

1)

Summary Introduction

To determine: The system utilization rate.

Introduction: System utilization refers to percentage amount of capacity which is utilized or we can say that actual output is divided by potential output. It is operational metric for business which indicates aggregate productive capacity.

It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

1)

Summary Introduction

To determine: The system utilization rate.

Introduction: System utilization refers to percentage amount of capacity which is utilized or we can say that actual output is divided by potential output. It is operational metric for business which indicates aggregate productive capacity.

It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

2)

Summary Introduction

To determine: The average number customers waiting for service in line.

3)

Summary Introduction

To determine: Average number of customers waiting time.

b)

1)

Summary Introduction

To determine: The average number of customer waiting for repairs.

1)

Summary Introduction

To determine: The average number of customer waiting for repairs.

2)

Summary Introduction

To determine: The system utilization rate.

Introduction: It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

3)

Summary Introduction

To determine: The idle time.

4)

Summary Introduction

To determine: Probability of two or more customers in the system.

c)

1)

Summary Introduction

To determine: The system utilization rate.

1)

Summary Introduction

To determine: The system utilization rate.

2)

Summary Introduction

To determine: Average number of customers in the system (L_s).

3)

Summary Introduction

To determine: Average time customers wait in line for service (W_q).

4)

Summary Introduction

To determine: The average waiting time for an arrival not immediately served (hours) (W_a).

Expert Solution & Answer

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The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $30 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan B: Vary the workforce to produce the prior month's demand. Demand was 1,300 units in June. The cost of hiring additional workers is $35 per unit produced. The cost of layoffs is $60 per unit cut back. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change (i.e., going from production of 1,300 in July to 1300 in August requires a layoff (and related costs) of 0 units in August). Hire Month 1 July Demand 1300 Production (Units) Layoff (Units) Ending Inventory Stockouts (Units) 2 August 1150 3 September 1100 4 October 1600 5 November 1900 6 December 1900

The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $100 per unit, inventory carrying costs of $20 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,100 units per month and subcontract additional units at a $65 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers). Ending Month Demand Production Inventory Subcontract (Units) 1 July 1300 1,100 0 2 August 1150 1,100 0 3 September 1100 1,100 0 4 October 1600 1,100 0 5 November 1900 1,100 0 6 December 1200 1,100 0

Please help me expand upon my research even more in detail please. Need help added more to mine from the photos please. Not sure what more I can add.

Answer 4

Question

Chapter 18, Problem 1P

a)

1)

Summary Introduction

To determine: The system utilization rate.

Introduction: System utilization refers to percentage amount of capacity which is utilized or we can say that actual output is divided by potential output. It is operational metric for business which indicates aggregate productive capacity.

It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

1)

Summary Introduction

To determine: The system utilization rate.

Introduction: System utilization refers to percentage amount of capacity which is utilized or we can say that actual output is divided by potential output. It is operational metric for business which indicates aggregate productive capacity.

It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

2)

Summary Introduction

To determine: The average number customers waiting for service in line.

3)

Summary Introduction

To determine: Average number of customers waiting time.

b)

1)

Summary Introduction

To determine: The average number of customer waiting for repairs.

1)

Summary Introduction

To determine: The average number of customer waiting for repairs.

2)

Summary Introduction

To determine: The system utilization rate.

Introduction: It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

3)

Summary Introduction

To determine: The idle time.

4)

Summary Introduction

To determine: Probability of two or more customers in the system.

c)

1)

Summary Introduction

To determine: The system utilization rate.

1)

Summary Introduction

To determine: The system utilization rate.

2)

Summary Introduction

To determine: Average number of customers in the system (L_s).

3)

Summary Introduction

To determine: Average time customers wait in line for service (W_q).

4)

Summary Introduction

To determine: The average waiting time for an arrival not immediately served (hours) (W_a).

Expert Solution & Answer

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Students have asked these similar questions

The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $30 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan B: Vary the workforce to produce the prior month's demand. Demand was 1,300 units in June. The cost of hiring additional workers is $35 per unit produced. The cost of layoffs is $60 per unit cut back. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change (i.e., going from production of 1,300 in July to 1300 in August requires a layoff (and related costs) of 0 units in August). Hire Month 1 July Demand 1300 Production (Units) Layoff (Units) Ending Inventory Stockouts (Units) 2 August 1150 3 September 1100 4 October 1600 5 November 1900 6 December 1900

The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $100 per unit, inventory carrying costs of $20 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,100 units per month and subcontract additional units at a $65 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers). Ending Month Demand Production Inventory Subcontract (Units) 1 July 1300 1,100 0 2 August 1150 1,100 0 3 September 1100 1,100 0 4 October 1600 1,100 0 5 November 1900 1,100 0 6 December 1200 1,100 0

Please help me expand upon my research even more in detail please. Need help added more to mine from the photos please. Not sure what more I can add.

Answer 5

Chapter 18, Problem 1P

a)

1)

Summary Introduction

To determine: The system utilization rate.

Introduction: System utilization refers to percentage amount of capacity which is utilized or we can say that actual output is divided by potential output. It is operational metric for business which indicates aggregate productive capacity.

It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

1)

Summary Introduction

To determine: The system utilization rate.

Introduction: System utilization refers to percentage amount of capacity which is utilized or we can say that actual output is divided by potential output. It is operational metric for business which indicates aggregate productive capacity.

It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

2)

Summary Introduction

To determine: The average number customers waiting for service in line.

3)

Summary Introduction

To determine: Average number of customers waiting time.

b)

1)

Summary Introduction

To determine: The average number of customer waiting for repairs.

1)

Summary Introduction

To determine: The average number of customer waiting for repairs.

2)

Summary Introduction

To determine: The system utilization rate.

Introduction: It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

3)

Summary Introduction

To determine: The idle time.

4)

Summary Introduction

To determine: Probability of two or more customers in the system.

c)

1)

Summary Introduction

To determine: The system utilization rate.

1)

Summary Introduction

To determine: The system utilization rate.

2)

Summary Introduction

To determine: Average number of customers in the system (L_s).

3)

Summary Introduction

To determine: Average time customers wait in line for service (W_q).

4)

Summary Introduction

To determine: The average waiting time for an arrival not immediately served (hours) (W_a).

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Answer 6

Chapter 18, Problem 1P

a)

1)

Summary Introduction

To determine: The system utilization rate.

Introduction: System utilization refers to percentage amount of capacity which is utilized or we can say that actual output is divided by potential output. It is operational metric for business which indicates aggregate productive capacity.

It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

1)

Summary Introduction

To determine: The system utilization rate.

Introduction: System utilization refers to percentage amount of capacity which is utilized or we can say that actual output is divided by potential output. It is operational metric for business which indicates aggregate productive capacity.

It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

2)

Summary Introduction

To determine: The average number customers waiting for service in line.

3)

Summary Introduction

To determine: Average number of customers waiting time.

b)

1)

Summary Introduction

To determine: The average number of customer waiting for repairs.

1)

Summary Introduction

To determine: The average number of customer waiting for repairs.

2)

Summary Introduction

To determine: The system utilization rate.

Introduction: It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

3)

Summary Introduction

To determine: The idle time.

4)

Summary Introduction

To determine: Probability of two or more customers in the system.

c)

1)

Summary Introduction

To determine: The system utilization rate.

1)

Summary Introduction

To determine: The system utilization rate.

2)

Summary Introduction

To determine: Average number of customers in the system (L_s).

3)

Summary Introduction

To determine: Average time customers wait in line for service (W_q).

4)

Summary Introduction

To determine: The average waiting time for an arrival not immediately served (hours) (W_a).

Expert Solution & Answer

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Answer 7

Chapter 18, Problem 1P

a)

1)

Summary Introduction

To determine: The system utilization rate.

Introduction: System utilization refers to percentage amount of capacity which is utilized or we can say that actual output is divided by potential output. It is operational metric for business which indicates aggregate productive capacity.

It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

Answer 8

1)

Summary Introduction

To determine: The system utilization rate.

Introduction: System utilization refers to percentage amount of capacity which is utilized or we can say that actual output is divided by potential output. It is operational metric for business which indicates aggregate productive capacity.

It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

Answer 9

1)

Summary Introduction

To determine: The system utilization rate.

Introduction: System utilization refers to percentage amount of capacity which is utilized or we can say that actual output is divided by potential output. It is operational metric for business which indicates aggregate productive capacity.

It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

Answer 10

2)

Summary Introduction

To determine: The average number customers waiting for service in line.

Answer 11

2)

Summary Introduction

To determine: The average number customers waiting for service in line.

Answer 12

3)

Summary Introduction

To determine: Average number of customers waiting time.

Answer 13

3)

Summary Introduction

To determine: Average number of customers waiting time.

Answer 14

b)

1)

Summary Introduction

To determine: The average number of customer waiting for repairs.

1)

Summary Introduction

To determine: The average number of customer waiting for repairs.

2)

Summary Introduction

To determine: The system utilization rate.

Introduction: It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

3)

Summary Introduction

To determine: The idle time.

4)

Summary Introduction

To determine: Probability of two or more customers in the system.

c)

1)

Summary Introduction

To determine: The system utilization rate.

1)

Summary Introduction

To determine: The system utilization rate.

2)

Summary Introduction

To determine: Average number of customers in the system (L_s).

3)

Summary Introduction

To determine: Average time customers wait in line for service (W_q).

4)

Summary Introduction

To determine: The average waiting time for an arrival not immediately served (hours) (W_a).

Answer 15

b)

1)

Summary Introduction

To determine: The average number of customer waiting for repairs.

Answer 16

1)

Summary Introduction

To determine: The average number of customer waiting for repairs.

Answer 17

1)

Summary Introduction

To determine: The average number of customer waiting for repairs.

Answer 18

2)

Summary Introduction

To determine: The system utilization rate.

Introduction: It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

Answer 19

2)

Summary Introduction

To determine: The system utilization rate.

Introduction: It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

Answer 20

3)

Summary Introduction

To determine: The idle time.

Answer 21

3)

Summary Introduction

To determine: The idle time.

Answer 22

4)

Summary Introduction

To determine: Probability of two or more customers in the system.

Answer 23

4)

Summary Introduction

To determine: Probability of two or more customers in the system.

Answer 24

c)

1)

Summary Introduction

To determine: The system utilization rate.

1)

Summary Introduction

To determine: The system utilization rate.

2)

Summary Introduction

To determine: Average number of customers in the system (L_s).

3)

Summary Introduction

To determine: Average time customers wait in line for service (W_q).

4)

Summary Introduction

To determine: The average waiting time for an arrival not immediately served (hours) (W_a).

Answer 25

c)

1)

Summary Introduction

To determine: The system utilization rate.

Answer 26

1)

Summary Introduction

To determine: The system utilization rate.

Answer 27

1)

Summary Introduction

To determine: The system utilization rate.

Answer 28

2)

Summary Introduction

To determine: Average number of customers in the system (L_s).

Answer 29

2)

Summary Introduction

To determine: Average number of customers in the system (L_s).

Answer 30

3)

Summary Introduction

To determine: Average time customers wait in line for service (W_q).

Answer 31

3)

Summary Introduction

To determine: Average time customers wait in line for service (W_q).

Answer 32

4)

Summary Introduction

To determine: The average waiting time for an arrival not immediately served (hours) (W_a).

Answer 33

4)

Summary Introduction

To determine: The average waiting time for an arrival not immediately served (hours) (W_a).

Answer 34

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Answer 35

Expert Solution & Answer

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Answer 45

Ch. 18.1 - Prob. 1.1RQ Ch. 18.1 - Prob. 1.2RQ Ch. 18 - Prob. 1DRQ Ch. 18 - Why do waiting lines form even though a service...Ch. 18 - Prob. 3DRQ Ch. 18 - Prob. 4DRQ Ch. 18 - What approaches do supermarkets use to offset...Ch. 18 - Prob. 6DRQ Ch. 18 - Prob. 7DRQ Ch. 18 - Prob. 8DRQ

Solution Summary: The author explains that system utilization refers to percentage amount of capacity which is utilized or we can say that actual output is divided by potential output.

Concept explainers

To determine: The average number customers waiting for service in line.

To determine: Average number of customers waiting time.

To determine: The average number of customer waiting for repairs.

To determine: The average number of customer waiting for repairs.

To determine: The system utilization rate.

Introduction: It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

To determine: The idle time.

To determine: Probability of two or more customers in the system.

To determine: The system utilization rate.

To determine: The system utilization rate.

To determine: Average number of customers in the system (L_s).

To determine: Average time customers wait in line for service (W_q).

To determine: The average waiting time for an arrival not immediately served (hours) (W_a).

Chapter 18 Solutions

Solution Summary: The author explains that system utilization refers to percentage amount of capacity which is utilized or we can say that actual output is divided by potential output.

Concept explainers

To determine: The average number customers waiting for service in line.

To determine: Average number of customers waiting time.

To determine: The average number of customer waiting for repairs.

To determine: The average number of customer waiting for repairs.

To determine: The system utilization rate. Introduction: It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

To determine: The idle time.

To determine: Probability of two or more customers in the system.

To determine: The system utilization rate.

To determine: The system utilization rate.

To determine: Average number of customers in the system (Ls).

To determine: Average time customers wait in line for service (Wq).

To determine: The average waiting time for an arrival not immediately served (hours) (Wa).

Chapter 18 Solutions

To determine: The system utilization rate.

Introduction: It reflects the ratio of demand to capacity or supply, it is also commonly known as Capacity utilization rate.

To determine: Average number of customers in the system (L_s).

To determine: Average time customers wait in line for service (W_q).

To determine: The average waiting time for an arrival not immediately served (hours) (W_a).