Xeon Inc., a maker of chocolate products, assigns its packaging and labeling to First Choice U.S.A., a firm that specializes in
1 answer:
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Answer:
12.55 days
Explanation:
<em><u>Provided information </u></em>
Number of employees 2
Average production time=1.8 days
Standard deviation=2.7 days
Inter-arrival time= 1 day
Coefficient of variation= 1 day
Standard deviation of inter-arrival time= 1 day
The coefficient of variations
<u>Inter-arrival coefficient of variation </u>
where
is standard deviation of inter-arrival time, T is inter-arrival time and
is coefficient of variation of inter-arrival time
<u>Production time coefficient of variation </u>
<u><em>Total utilization time </em></u>
where T is the time of production, n is number of employees, U is utilization,
is inter-arrival time
Therefore, utilization time by 2 employees is 0.9
<u>Expected average waiting time </u>
Where is expected average waiting time and the other symbols as already defined
Substituting 1.5 for , 1 for
, 0.9 for U, 2 for n, 1 for
and 1.8 for T
and rounding off to 2 decimal places we obtain 12.55 days
Therefore, expected duration between order received and beginning of production is approximately 12.55 days