Tik Ed McMaster is selling tickets to a balloon ride. The ride takes place at dawn on Sunday because the winds are most calm at that time of day. Demand for the ride is equally likely to be 1, 2, 3, 4, or 5 units. Tik buys the tickets for $10 each and resells them for $20 each. Unsold tickets have no value, and he can only place one order for this week. If Tik orders 3 tickets what is the expected number of unused tickets? In other words what is the expected value of the number of tickets that Tik buys that will go unused?

The Harbor-East Star, a daily local newspaper, used the newsvendor model to determine their production quantity to be 1500 papers. Following the recession, the editor observed that the average demand stayed the same but the variability (standard deviation) of demand has decreased. How should the production quantity be changed if demand is normally distributed?

Tik Ed McMaster is selling tickets to a balloon ride. The ride takes place at dawn on Sunday because the winds are most calm at that time of day. Demand for the ride is equally likely to be 1, 2, 3, 4, or 5 units. Tik buys the tickets for $10 each and resells them for $20 each. Unsold tickets have no value, and he can only place one order for this week. If Tik orders 3 tickets, what is the expected number of lost sales? In other words, what is the expected value of the number of people who want a ticket and will not be able to get one?

Chesapeake Bay Lumber company is selling a new product through a single retailer – Home Pepot.  Demand for the product is equally likely to be 1, 2, 3, 4, 5, or 6 units per week. Production cost for the supplier is $100, and the retail price to the final customer is $300. The salvage value is 0, items left over at the end of the week are discarded, and orders are placed once per week. If the manufacturer and the retailer were part of the same organization and kept all supply chain profit, how many units would be produced?

A claims adjuster employs 7 clerks for evaluating insurance claims. There are three steps in the process, and these steps take 1 hrs, 2 hrs, and 4 hrs respectively. The adjuster’s office works 8 hours a day. Starting from A, which is the first correct answer shown below assuming each clerk is assigned to one type of task for the day?

When considering what is transformed in a process, an input is:

Assume you have a 3-step process using 3 machines with deterministic activity times of 15 min, 20 min, and 15 min respectively and it costs $10 to add a machine at any step. How much can you increase capacity if you invest $30 = ($10*3) to add machines?

Professor Chambers gets a side job as a photographer and works a 3 hour shift. He has noticed that 4 clients arrive per shift and the time between them is exponentially distributed. It takes him 30 minutes to handle each client but this time is also exponentially distributed. What is the probability that Professor Chambers is serving one customer and exactly one is waiting to be served?

A new grocery store, Whole Paycheck for Foods, recently reconfigured their express checkout lines. While the previous setup had a separate line for each of six checkout counters, the new configuration has a common line leading up to 6 checkout counters. Identify the true statement(s) in the list below:

When conducting process analysis, the term “starving” refers to: