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Larry Ellison starts a company that manufacturers high-end custom leather bags. He hires 2 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 1.8 days with a standard deviation of 2.1 days. Larry expects to receive one customer order per day on average. The interarrival times of orders have a coefficient of variation of 1.

What is the expected duration, in days, between when an order is received and when production begins on the bag? Round to nearest integer.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M93121022

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