Larry Ellison starts a company that manufacturers high-end custom leather bags.
ID: 364239 • Letter: L
Question
Larry Ellison starts a company that manufacturers high-end custom leather bags. He hires 3 employees. Each employee only begins working on a bag when a customer order has been received and then she makes the bag from beginning to end. The average production time of a bag is 2.2 days with a standard deviation of 3 days. Larry expects to receive one customer order per day on average. The interarrival times of orders have a coefficient of variation of 1.
What is the expected duration, in days, between when an order is received and when production begins on the bag? Round to nearest integer.days
Explanation / Answer
Average production time: 2.2 days
Standard deviation time: 3 days
Average order per day: 1
Inter arrival coefficient variation: 1
Expected duration in days between order received and production begins: 3 / 2.2 = 1.36 days
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