# 100 needles per month

Question

QUESTION 1

The goal of the basic EOQ model is to:

minimize the sum of setup and holding costs.

minimize the sum of purchasing and setup costs.

minimize order size.

minimize order cost.

minimize holding cost.

QUESTION 2

As the ratio of arrival rate to service rate is increased, which of the following is likely?

The average wait time decreases.

Utilization is decreased because of the added strain on the system.

The average number in the system decreases.

Customers move through the system in less time because utilization is increased.

None of the above.

QUESTION 3

The Anderson Palmer Hospital would like to reduce the cost of its inventory by calculating the optimal order size for hypodermic needles. On average, the hospital uses 100 needles per month. The purchasing staff has calculated that the EOQ for needles is 135 needles. If they proceed to purchase in EOQ quantities, how many orders per year will be placed?

QUESTION 4

The term queue discipline refers to:

the willingness of customers to wait in line for service.

having multiple waiting lines without customers switching from line to line.

the order in which customers are processed.

the reason waiting occurs in underutilized systems.

None of the above.

QUESTION 5

A single-server queueing system has an average service time of 16 minutes per customer, which is exponentially distributed. The manager is thinking of converting to a system with a constant service time of 16 minutes.The arrival rate will remain the same. The effect will be to:

increase the utilization factor.

decrease the utilization factor.

increase the average waiting time.

decrease the average waiting time.

not have any effect since the service time is unchanged.

QUESTION 6

The Anderson Palmer Hospital would like to reduce the cost of its inventory by calculating the optimal order size for hypodermic needles.On average, the hospital uses 100 needles per month, the cost of placing an order is \$15, and holding cost is estimated to be \$1.20 per needle per year.Using the EOQ formula, the optimal order size is:

QUESTION 7

Which of the following is not considered a holding cost?

Cost of goods sold

Opportunity cost

Interest

Insurance

Depreciation

QUESTION 8

A single bay car wash with an exponential arrival rate and service time has cars arriving an average of 10 minutes apart, and an average service time of 2 minutes. The utilization factor is:

0.20

0.67

2.50

5.00

None of the above

QUESTION 9

Which of the following is not generally considered as a measure of performance in queueing analysis?

The cost of servers plus customer waiting cost

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