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An automobile brake supplier receives an average of 1,000 orders per week. An average of 500 orders are waiting to be processed.
a) What is the average time spent by each order waiting to be processed?
b) Assume that the orders coming in are either small or large. Small orders are for an average of $500 and large orders are for an average of $5,000; 20% of the orders coming in are large with the rest being small. Currently, no distinction is made between the large and small orders. As a result, 20% of the orders waiting to be processed are large.
Is it worth reallocating resources so that large orders wait an average of 0.3 weeks while small orders wait an average of 0.7 weeks before being processed?
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The solution is detailed and dsecribes the concepts very well. The solution is very simple to understand as well. All the steps are clearly shown which makes it very easy for anyone to follow. Overall, an excellent response to question being asked..
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