Question

A hardware store rents its one wood chipper. A request for the chipper arrives every 4 days with a standard deviation of 4 days. On average clients rent the chipper for one day. If a request arrives and the chipper is not available, customers rent from another company. What is the utilization of the wood chipper?

Answer 1

Answer:

20%

Explanation:

The question has a Mean of 1 day and the Standard deviation is 4 days, So it is apparent that in every Five days including the 4 days standard deviation, we have the chipper to be available and clients in need of it can rent it for 1 day.

Therefore if the chipper is going to be rented on the 1st day, it would be rented again after 4 days, on the 5th day.

utilization for the chipper will be

= (1/5) x 100

= 0.2 x 100

= 20%