What is the retailer throughput in orders per hour

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Question: Customers place orders at an Internet retailer every 10 minutes on average. The company has one order fulfillment employee per shift who is capable of fulfilling an average order in $ minutes, once he begin work on it. The employee fulfills orders one at a time, in a first-come-first served order. Assume that both order interarrival times and order fulfillment times are exponentially distributed.

(a) What is the retailer's throughput (in orders per hour)?

(b) What is the capacity of the order fulfillment operation (in orders per hour)?

(d) On average, how many orders are awaiting fulfillment (include orders waiting to be fulfilled but not orders in the process of being falfilled)? (9) Suppose the company would like the average time between when an order is placed and when it is shipped to be no more than I hour. What is the largest order arrival rate (in orders per hour) that permits them to meet this target with their current order fulfillment operation?

Reference no: EM133360962

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