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A call center has a total of 5 telephone lines coming into its customer service department, which is staffed by 2 customer service representatives. Therefore up to 3 callers can be on hold at one time. If a customer calls when all of the lines are in use they get a busy signal. On average, 1.5 potential customers call every minute. Each customer service representative requires (on average) 1 minute to serve a caller. After great deliberation, management has decided to add another line, increasing the total to 6. What happens to the proportion of callers who get a busy signal?

In a system with four distinct production steps, the manager decided to double the capacity of the system by adding another machine at one of the steps. As a result the capacity of the system increased but it did not double. Which of the following statements present the most reasonable explanation(s)?

A new grocery store, Whole Paycheck for Foods, recently reconfigured their express checkout lines. While the previous setup had a separate line for each of six checkout counters, the new configuration has a common line leading up to 6 checkout counters. Identify the true statement(s) in the list below:

Tik Ed McMaster is selling tickets to a balloon ride. The ride takes place at dawn on Sunday because the winds are most calm at that time of day. Demand for the ride is equally likely to be 1, 2, 3, 4, or 5 units. Tik buys the tickets for $10 each and resells them for $20 each. Unsold tickets have no value, and he can only place one order for this week. If Tik orders 3 tickets, what is the expected number of unused tickets? In other words, what is the expected value of the number of tickets that Tik buys that will go unused?

Chesapeake Bay Lumber company is selling a new product through a single retailer – Home Pepot.  Demand for the product is equally likely to be 1, 2, 3, 4, 5, or 6 units per week. Production cost is $100, wholesale price is $200, and the retail price is $300. The salvage value is 0, items left over at the end of the week are discarded, and orders are placed once per week. If the retailer has to place his order before knowing demand, how much should he order? (Assume the order size can only be integers.)

As one goes from a job shop towards a flow shop in the product process matrix, what do I expect to see happen to product routings?

When conducting process analysis, the term “starving” refers to:

On a recent visit to the Plowstein Brain clinic we found that just 3 resources are required: an administrator, Mr. Red; a CA, Nurse White; and a Physician, Dr. Blue. From direct observation we find that each patient spends 0.3 hours with Administrator Red, 0.4 hours with Nurse White, and 0.15 hours with Dr. Blue. We have capacity cost rates of $45/hr for Red, $65/hr for White, and $300/hr for Blue. The clinic reports charges for each visit of $400 and the reimbursement for the visit is $200. If profit is predicted based on the capacity cost rates what is the profit for each visit?

The Conner Company uses a two-step process for making wooden boards with holes in them.  Step 1 is drilling and Step 2 is sanding. Drilling can be done using a hand drill that takes 2 minutes to load the bit and 2 minutes to drill each hole. If production of each unit involves drilling 14 holes, what is the maximum output of Step 1 using the manual drill if 1 setup is involved for each order of 1 board?

A corporation declares a cash dividend of $0.90 per share when 450,000 shares are outstanding. What is the total dividend declared?