Assignment
To a point, increasing the utilization of available capacity makes sense. However, if demand and/or service times are uncertain, increased utilization of a resource will be accompanied by an increase in the average queue length.
A. Is there an ideal utilization rate for service resources? What is your source for such an assertion?
B. Would you expect this ideal to be applicable to all service industries? Why or why not? If not, what are some examples of services that warrant higher utilization rates? Lower utilization rates?