Larry Ellison starts a company that manufacturers high-end custom leather bags. He hires 3 employees. Each employee only begins working on a bag when a customer order has been received and then she makes the bag from beginning to end. The average production time of a bag is 2.2 days with a standard deviation of 3 days. Larry expects to receive one customer order per day on average. The interarrival times of orders have a coefficient of variation of 1. What is the expected duration, in days, between when an order is received and when production begins on the bag?

0.93 days

Explanation:

Number of employees ( m ) = 3

Average production time of a bag ( p ) = 2.2 days

standard deviation ( std ) = 3 days

Number of customer order expected per day = 1

Coefficient of interarrival times of order ( c ) = 1

arrival time ( a ) = 1

Determine the expected duration between when a n order is received and when production begins on the bag

determine the utilization time = p / ( m*a ) = 2.2 / ( 3 * 1 ) = 0.733

Hence the expected time :

Tq = 0.93 days

attached below is the detailed solution

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