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Problem 1: RAC’s Bank of Davao City has one outside drive-up teller. It takes the teller an average of 4 minutes to
serve a bank customer. Customers arrive at the drive-up window at a rate of 12 per hour. The bank operations
officer is currently analyzing the possibility of adding a second drive-up window, at an annual cost of Php200,000.
It is assumed that arriving cars would be equally divided between both windows. The operations officer estimates
that each minute’s reduction in customer waiting time would increase the bank’s revenue by Php20,000 annually.
14. What is the current utilization of the single-drive up window at RAC’s Bank of Davao City?
a. 0.2
b. 0.4
c. 0.6
d. 0.8
15. If a second drive-up window is added, how would the service rate (μ') change compared to the current system?
a. It would decrease
b. It would remain the same
c. It would double
d. It would triple
16. What is the utilization of the proposed system with two drive-up windows?
a. 0.2
b. 0.4
c. 0.6
d. 0.8
17. If the second drive-up window is added, what is the expected annual revenue increase according to the operations
officer's estimate?
a. Php 100,000
b. Php 200,000
c. Php 400,000
d. Php 600,000
Problem 2 Chef RAC serves meals from a food truck that he operates inside the University of Southeastern
Philippines during events. During these events, customers arrive at the food truck with an arrival rate of 1.25
customers per minute. Chef RAC has a service rate of 2 customers per minute. Assume Poisson arrivals and
exponential service times.
19. What is the average time a customer waits for service to begin?
a. 0.3846
b. 0.6154
c. 0.8333
d. 1.0417
20. Chef RAC is considering hiring an additional staff member to decrease customer waiting times. What impact would an
increase in service rate have on the average waiting time for customers?
a. Average waiting time will increase.
b. Average waiting time will decrease.
c. Average waiting time will remain unchanged.
d. Impact cannot be determined without additional information.
21. Chef RAC wants to implement a priority system for certain customers. What factor should Chef RAC consider to
determine which customers receive priority?
a. Arrival rate
b. Service rate
c. Average waiting time
d. Customer type or priority
22. Chef RAC is concerned about the potential revenue loss due to customers leaving if the waiting time is too long. What
metric should Chef RAC focus on to address this concern?
a. Arrival rate
b. Service rate
c. Utilization factor
d. Probability of waiting
23. Chef RAC is considering implementing an online pre-ordering system. How might this impact the queuing system?
a. Increase in arrival rate
b. Decrease in service rate
c. Reduction in the number of customers waiting
d. No impact on the queuing system
Problem 3. The daily demand for radial tires at RACs Auto Tire over the past 200 days is shown below:
Random
Day Number
Numbers
1 86
2 71
3 93
4 10
5 37
6 83
7 63
8 78
9 92
10 75
Total 10-day
Demand
24. What is the daily demand for radial tires corresponding to a random number of 71?
a. 3
b. 4
c. 5
d. 2
25. On Day 4, the random number 10 corresponds to which daily demand interval?
a. 0 – 5
b. 6 – 15
c. 16 – 35
d. 36 – 65
27. If the random number 93 is generated on a particular day, what is the corresponding daily demand?
a. 3
b. 4
c. 5
d. 2
28. What is the total 10-day demand for radial tires based on the provided random numbers?
a. 35
b. 38
c. 42
d. 45
29. If a random number falls in the interval [36 - 65], what is the corresponding daily demand?
a. 2
b. 3
c. 4
d. 5
30. What is the probability of having a daily demand of 2 or less radial tires?
a. 0.15
b. 0.25
c. 0.35
d. 0.45
31. If the random number 50 is generated on a particular day, what is the corresponding daily demand?
a. 2
b. 3
c. 4
d. 5
32. On Day 7, the random number 63 corresponds to which daily demand interval?
a. 0 – 5
b. 6 – 15
c. 16 – 35
d. 36 – 65
33. What is the probability of having a daily demand of exactly 1 radial tire?
a. 0.05
b. 0.10
c. 0.20
d. 0.30
Problem 4. Burlington Socks sells their product to wholesalers. The Mindanao Manager wanted to simulate the
number of socks that will be sold in the next 5 weeks. The information is provided below:
Random
Week Number
Numbers
1 80
2 79
3 19
4 6
5 25
Total 5-week Demand
34. What is the total demand for socks over the 5-week period according to the simulation?
a. 1000
b. 1200
c. 1300
d. 1500
35. What is the demand for socks in the first week according to the simulation?
a. 100
b. 200
c. 300
d. 400
37. What is the demand for socks in the fourth week according to the simulation?
a. 100
b. 200
c. 300
d. 400