1- Find a Doctor (FaD) is a small startup that helps people find a physician that best meets their needs (location, insurance accepted, etc.). During a "slow" time for FaD, 7 staff members take calls from customers. On average, one call arrives every 5 minutes. On average, each staff member spends 20 minutes with each customer. How long (in minutes) does a customer spend on average waiting on hold before he or she can start speaking to a representative? (Choose the answer closest to your calculations)
a- 1.2 minutes
b- .7 minutes
c- 11.4 minutes
d- 15.2 minute
2- A customer support call center for a cell phone service company has an average waiting time of 5 minutes. Due to some network issues, the call volume (i.e., the number of calls arriving at the call center per hour) is expected to increases by 50%. Keeping the staffing level and the average time spent in processing a call at the same level, this increase in call volume will have to the following impact on the average waiting time:
a- The average waiting time will not change.
b- The average waiting time will increase by less than 50%.
c- The average waiting time will increase by 50%
d- The average waiting time will increase by more than 50%
3- Andrew manages two clinics, one in upper Manhattan and another in lower Manhattan. Both clinics provide same type of services, have similar average processing times as well as the same level of utilization of workers. However, the lower Manhattan clinic sees twice the number of patients per day as the upper Manhattan clinic. Which clinic will have lower average waiting time of patients?
a- Lower Manhattan clinic will have lower average waiting time.
b- Upper Manhattan clinic will have lower average waiting time.
c- Both will have same average waiting time.
d- Both will have very high average waiting time.
4- Some restaurants, when busy, let customers read menus and place orders before being seated, namely, while waiting in line for a table. This improves customer experience because:
a- Uncertain waits seem longer than certain waits.
b- Sharing information decreases customer unhappiness.
c- In process waits seem shorter than pre-process waits
d- It lessens the perception of unfairness in waiting
5- A company reports annual sales of $5 million, cost of goods sold of $2 million, inventory of $.5 million, and net income of $0.75 Million. What are the company's annual inventory turns?
a- 4
b- .25
c- 10
d- .1
6- A bakery uses 80 bags of chocolate chips each year. The chocolate chips are purchased from a supplier for a price of $80 per bag and an ordering cost of $20 per order. Bakery A's annual inventory holding cost percentage is 40%. The bakery orders chocolate chip bags 2 times every year. What is their total annual cost of ordering and holding inventory?
a- 800
b- 1360
c- 680
d- 168
7- A company sells 600 bottles of dietary supplements per week at $100 per bottle. The supplement is ordered from a supplier who charges a fixed cost of $30 per order, and $50 per bottle. The annual inventory holding cost is 40%. Assume the company operates 50 weeks in a year. What is the optimal number of bottles the company should order?
a- 300
b- 212
c- 42
d- 30