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P 3=1−( 1− p ) × ( 1+ p2 + p3 + p )=0.4096
(g) The probability of having more than four customers in the system
1
Student Name: Trần Minh Hoàng
Student ID: IELSIU18042
0! 1
1! 1
2! 2
λ/µ 0.625
1-p 0.688
3! 6
4! 24
p × Po ×0.625 2
Lq= =0.068
0.6882 × 2
(d) The average time a customer spends waiting in line
Lq 0.068
Wq= = =0.0068
λ 10
(e) The average time a customer spends in the system
1 1
W =Wq+ =0.0068+ =0.069
µ 16
(f) Average number of customers in the system
L=λ × W =10 × 0.069=0.69
(g) The probability of having more than three customers in the system
0.6253
P 3=Po × =0.010657
6×2
(h) The probability of having more than four customers in the system
0.6254
P 4=Po × =0.000833
24 ×22
2
Student Name: Trần Minh Hoàng
Student ID: IELSIU18042
D D
M=
[ ( )]
Dp+
Q
s
[ ( )]
product 1
+…+ Dp+
Q
s
product n
C
[ ( )]
N 1−
100
¿
[ 18,000∗0.05+ ( )][
60 (
1 + 13,000∗0.2+
80 )
∗4.5 + 25,000∗0.05+
120][ ∗8.2 ( ) ] ¿ 2.25
20
8∗2∗5∗52∗ 1−
100 [ ( )]
There are 2 options: 2 machines with overtime functioning or get 3 new machines
(b) If the operation currently has two machines, what is the capacity gap?
The capacity gap is: 2.25−2=0.25
→ There should be 1 additional machine, unless the supplier runs 2 overtime machines.
(b) During the second week in March, Bob’s Garage completed 90 alignments.
What is the utilization as a percent of peak capacity?
3
Student Name: Trần Minh Hoàng
Student ID: IELSIU18042
(b) If Roche expands its capacity to serve 700,000 customers per year at the end of year
2, the landowner will build the same addition for $240,000 and a 3-year lease at
$12,000 per month. What are the projected annual incremental pretax cash flows
attributable to this expansion alternative?
Year 1 2 3 4 5
Customers 560,000 600,000 685,000 700,000 715,000
Average Sales per Customer $ 50.00 $ 53.00 $ 56.00 $ 60.00 $ 64.00