Operations Management
Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 17, Problem 2CQ
Summary Introduction

To determine: Whether denial of service probability decreases when servers are increased and nothing else are changed.

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A major retail store recently spent $24 million dollars on a large private satellite communication system that provides state-of-the-art voice, data, and video transmission between stores and regional headquarters. When an item gets sold, the scanner software updates the inventory system in real-time. As a result, store transactions are passed on to regional and national headquarters instantly, which keeps inventory records up to date. One of the store’s major competitors has an older system in which transactions are uploaded at the end of a business day. The first company feels that its method of instant communication and feedback allows it to react more quickly to changes in the market, giving the company a competitive advantage. For example, if an early winter snowstorm causes stores across the upper Midwest to start selling high-end (and high-profit) snow throwers quite quickly, the company’s nearest warehouse can prepare next-day shipments to maintain a good inventory balance,…
Once data entered into the data warehouse, it cannot be modified anymore. True False
Which of the following statements will hold good in the case of a system with uncertainty in demand for service and in service times? When the utilization of resources fall it is an indication of greater efficiency of the service   It is a good practice to plan for resource utilization levels more than 85%   Cost of waiting to get serviced is directly proportional to the cost of providing the service   None of the above
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