In a given amount of time John can produce either 40 pounds of vegetables or 10 pounds of chicken. In the same amount of time Ge

Answer:

Part a:

Show the probability density function for the waiting times at Kroger, assuming they are exponentially distributed.

Solution:

Probability density function f(x) = (1/ )*e-x/  = (1/26)*e-x/26 (result)

Part b:

Calculate the probability that a customer waits between 15 and 30 seconds.

Solution:

0.2462

Part c:

Determine the probability that a customer must wait longer than 2 minutes.

Solution:

0.0099

Explanation:

All calculations are included.

Answer:

The right choice is B: Gap 2.

Explanation:

The gaps model of service quality, known as the 5 gaps model, is essential for organizations to guarantee customer satisfaction. Gap 2 specifically addresses the disparity between management perceptions and the actual customer experience. In this gap, managers make it a priority to define and deliver the expected quality of service. In this instance, FedEx is addressing customer-defined performance standards, indicating it plays a significant role in closing Gap 2 in the service quality gaps model.

Answer:

d. $1,376.74

Explanation:

The NPV for Project X is calculated as follows:

Year Cash outflow/inflow Present value factor      Present value

0              -$10,000.00                         1                   -$10,000.00

1                 $6,000.00                   0.900901              $5,405.41

2                 $8,500.00                     0.811622              $6,898.79

NPV                                                                        $2,304.20

For Project Y, the NPV is:

Year Cash outflow/inflow Present value factor      Present value

0                -$10,000.00                       1                   -$10,000.00

1                   $4,600.00              0.900901             $4,144.14

2                   $4,600.00                  0.811622             $3,733.46

3                    $4,600.00                   0.731191                   $3,363.48

4                    $4,600.00                  0.658731             $3,030.16

Total                                                                        $4,271.25

The formula for calculating Equivalent Annual Annuity is expressed as:

C = r*(NPV)/(1-(1+r)-n)

For Project X, where NPV = $2304.20

using r = 11% and n = 2

Plugging in values into the formula gives us:

C = 11%*$2304.20/(1-(1+11%)−2

For Project Y, where NPV = $4271.25

using r = 11% and n = 4

Inserting the values into the formula, we find C = 11%*$4271.25/(1-(1+11%)−4

   = $1376.74

Thus, the more profitable project is Y, with an equivalent annual annuity of $1376.74.

Answer:

The question is rephrased to include the options:

A. The production order quantity model applies under conditions where the basic EOQ model's assumptions hold true, except that receiving is not instantaneous.

B. Average inventory exceeds half the quantity of production order.

C. Due to the non-instantaneous receipt, some items are used immediately rather than being stored.

D. All other things being equal, a lower demand rate to production rate ratio results in a smaller production order quantity.

E. All options are true.

The right answer is option B, "Average inventory is more than one-half of the production order quantity."

Explanation:

Having inventory allows for a division within the production stages, separating finished products from those that are not yet completed, potentially generating income for the company.

An average inventory will be less than half of the production order quantity.

The production order quantity model allows for gradual receipt of orders rather than a single bulk delivery.

This model aids companies in managing their inventory holding costs and average fixed ordering expenses, ultimately helping them to check and reduce inventory costs and providing clarity on appropriate production quantities at any time.