1. A single-server waiting line system has an arrival pattern characterized by a Poisson distribution with three customers per hour. The average service time is 12 minutes. The service times are distributed according to the negative exponential distribution. The average time a customer can expect to wait in line is
A 18 minutes
B 36 minutes
C 30 minutes
D 60 minutes
2. What can be concluded if the optimal newsvendor quantity for a product with an average demand volume of 230 units and a standard deviation of 45 units is equal to 230 units?
A) There is no cost of understocking (per unit)
B) The cost of overstocking (per unit) is negative
C) The sum of the cost of overstocking (per unit) and the cost of understocking (per unit) is zero
D) The cost of overstocking (per unit) is equal to the cost of understocking (per unit)
3. In what sense is warehouse centralization a method of risk pooling?
Inventory levels will be higher.
Aggregate demand uncertainty can be reduced.
Average lead times will increase.
The number of warehouses can be reduced.