Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 16, Problem 13PA
Summary Introduction
To determine: The expected duration between when an order is received and when production begins on the bag.
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Larry Ellison starts a company that manufactures high-end custom leather bags. He hires two 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 1.7 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 one.
X Answer Is complete but not entirely correct.
(Carry at least 4 decimal places in all intermediate calculations.
Round your final answer to 2 decimal places.)
What is the expected duration, in days, between when an order is
received and when production begins on the bag?
30.39 8 days
Two methods are used to predict how many customers will call in for
help in the next four days. The first method predicts the numbers of
callers to be 23, 5, 14, and 20 for the four respective days. The
second method predicts 20, 13, 14, and 20 for the four respective
days. The actual numbers of callers turn out to be 23, 10, 15, and 19.
Which method has the smaller mean absolute error (MAE)?
Multiple Choice
The first method
The second method
Cannot be determined
Both methods have the same MAE
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