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Question: Bill First, general manager of Worth more


Bill First, general manager of Worth more Department Store, has estimated that every hour of customer time spent waiting in line for a sales clerk to become available costs the store $100 in lost sales and goodwill. Customers arrive at the checkout counter at the rate of 30 per hour, and the average service time is 3 minutes. The Poisson distribution describes the arrivals, and the service times are exponentially distributed. The number of sales clerks can be 2, 3, or 4, with each one working at the same rate. Bill estimates the salary and benefits for each clerk to be $10 per hour. The store is open 10 hours per day.

(a). Find the average time in the line if 2, 3, and 4 clerks are used.
(b). What is the total time spent waiting in line each day if 2, 3, and 4 clerks are used?
(c). Calculate the total of the daily waiting cost and the daily service cost if 2, 3, and 4 clerks are used. What is the minimum total daily cost?


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> A political campaign manager must coordinate several activities in order to be prepared for an upcoming election. The following table describes the relationships among the activities that need to be completed, as well as the estimated times. (a). Devel

> Colonel Electric is a large company that produces light bulbs and other electrical products. One particular light bulb is supposed to have an average life of about 1,000 hours before it burns out. Periodically, the company will test five of these and mea

> Kitty Products caters to the growing market for cat supplies, with a full line of products, ranging from litter to toys to flea powder. One of its newer products, a tube of fluid that prevents hair balls in longhaired cats, is produced by an automated ma

> For the past two months, Suzan Shader has been concerned about machine number 5 at the West Factory. To make sure that the machine is operating correctly, samples are taken, and the average and range for each sample are is computed. Each sample consists

> Due to the poor quality of various semiconductor products used in their manufacturing process, Micro laboratories has decided to develop a QC program. Because the semiconductor parts they get from suppliers are either good or defective, Milton Fisher has

> Sampling four pieces of precision-cut wire (to be used in computer assembly) every hour for the past 24 hours has produced the following results: Develop appropriate control limits and determine whether there is any cause for concern in the cutting proc

> Small boxes of NutraFlakes cereal are labeled “net weight 10 ounces.” Each hour, random samples of size n = 4 boxes are weighed to check process control. Five hours of observations yielded the following: Using these d

> Briefly describe three situations in which the FIFO discipline rule is not applicable in queuing analysis.

> Alan Resnik, a friend of Ray Cahn man, bet Ray $5 that Ray’s car would not start 5 days from now (see Problem 14-8). Problem 14-8: Ray Cahn man is the proud owner of a 1955 sports car. On any given day, Ray never knows whether his car will start. Ninet

> The first quick-oil-change store in Problem 14-28 retains 73% of its market share. This represents a probability of 0.73 in the first row and first column of the matrix of transition probabilities. The other probability values in the first row are equall

> During a recent trip to her favorite restaurant, Sandy (owner of shop 1) met Chris Talley (owner of shop 7) (see Problem 14-28). After an enjoyable lunch, Sandy and Chris had a heated discussion about market share for the quick-oil-change operations in t

> Sandy Sprunger is part owner in one of the largest quick-oil-change operations for a medium-sized city in the Midwest. Currently, the firm has 60% of the market. There are a total of 10 quick-lubrication shops in the area. After performing some basic mar

> As a result of a recent survey of students at the University of South Wisconsin, it was determined that the university-owned bookstore currently has 40% of the market. (See Problem 14-14.) The other three bookstores—Billâ€&#1

> Find the equilibrium conditions for Problem 14-24. Explain what it means. Problem 14-24: Set up both the vector of state probabilities and the matrix of transition probabilities given the following information: • Store 1 currently has 40% of the market;

> John Jones of Bayside Laundry has been providing cleaning and linen service for rental condominiums on the Gulf Coast for over 10 years. Currently, John is servicing 26 condominium developments. John’s two major competitors are Cleanco, which currently s

> Hicourt Industries is a commercial printing outfit in a medium-sized town in central Florida. Its only competitors are the Printing House and Gandy Printers. Last month, Hicourt Industries had approximately 30% of the market for the printing business in

> A study of accounts receivable at the A&W Department Store indicates that bills are current, 1 month overdue, 2 months overdue, written off as bad debts, or paid in full. Of those that are current, 80% are paid that month, and the rest become 1 month ove

> Andy Lange, president of the University of South Wisconsin, is concerned with the declining business at the University Book Store. (See Problem 14-14 for details.) The students tell him that the prices are simply too high. Andy, however, has decided not

> Describe the important operating characteristics of a queuing system.

> Resolve Problem 14-12 (Good eating Dog Chow) for five periods. Problem 14-12: Good eating Dog Chow Company produces a variety of brands of dog chow. One of their best values is the 50-pound bag of Good eating Dog Chow. George Hamilton, president of Good

> Good eating Dog Chow Company produces a variety of brands of dog chow. One of their best values is the 50-pound bag of Good eating Dog Chow. George Hamilton, president of Good eating, uses a very old machine to load 50 pounds of Good eating Chow automati

> Over any given month, Dress-Rite loses 10% of its customers to Fashion, Inc., and 20% of its market to Luxury Living. But Fashion, Inc., loses 5% of its market to Dress-Rite and 10% of its market to Luxury Living each month; and Luxury Living loses 5% of

> Management of the First Syracuse Bank is concerned about a loss of customers at its main office downtown. One solution that has been proposed is to add one or more drive-through teller stations to make it easier for customers in cars to obtain quick serv

> Milwaukee’s General Hospital has an emergency room that is divided into six departments: (1) the initial exam station, to treat minor problems or make diagnoses; (2) an x-ray department; (3) an operating room; (4) a cast-fitting room; (

> Coleman Tucker, a neurology intern at Morgantown University (MU), has been having problems balancing his checkbook. His monthly income is derived from a graduate research assistantship; however, he also makes extra money in most months by tutoring underg

> The Pelnor Corporation is the nation’s largest manufacturer of industrial-size washing machines. A main ingredient in the production process is 8- by 10-foot sheets of stainless steel. The steel is used for both interior washer drums and outer casings.

> Dr. Mark Greenberg practices dentistry in Topeka, Kansas. Greenberg tries hard to schedule appointments so that patients do not have to wait beyond their appointment time. His October 20 schedule is shown in the following table. Unfortunately, not every

> The Brennan Aircraft Division of TLN Enterprises operates a large number of computerized plotting machines. For the most part, the plotting devices are used to create line drawings of complex wing airfoils and fuselage part dimensions. The engineers oper

> Stephanie Robbins is the Three Hills Power Company management analyst assigned to simulate maintenance costs. In Section 13.5, we describe the simulation of 15 generator breakdowns and the repair times required when one repairperson is on duty per shift.

> Describe the meaning of slack and discuss how it can be determined.

> Simkin’s Hardware Store simulated an inventory ordering policy for Ace electric drills that involved an order quantity of 10 drills with a reorder point of 5. The first attempt to develop a cost-effective ordering strategy is illustrate

> Repeat the simulation in Problem 13.21, assuming that the reorder point is 4 units rather than 2. Compare the costs for these two situations. Problem 13.21: Dumoor Appliance Center sells and services several brands of major appliances. Past sales for a

> Dumoor Appliance Center sells and services several brands of major appliances. Past sales for a particular model of refrigerator have resulted in the following probability distribution for demand: The lead time, in weeks, is described by the following d

> Refer to Problem 13.19. Suppose the sale of football programs described by the probability distribution in that problem applies only to days when the weather is good. When poor weather occurs on the day of a football game, the crowd that attends the game

> Every home football game for the past 8 years at Eastern State University has been sold out. The revenues from ticket sales are significant, but the sale of food, beverages, and souvenirs has contributed greatly to the overall profitability of the footba

> An increase in the size of the barge-unloading crew at the Port of New Orleans has resulted in a new probability distribution for daily unloading rates. In particular, Table 13.10 may be revised as shown here: Table 13.10: DAILY UNLOADING RATE PROBABIL

> Refer to the data in Solved Problem 13.1, which deals with Higgins Plumbing and Heating. Higgins has now collected 100 weeks of data and finds the following distribution for sales: HOT WATER NUMBER OF HEATER SALES WEEKS THIS PER WEEK NUMBER WAS SOLD 3

> Compute the expected number of cars arriving in Problem 13.15 using the expected value formula. Compare this with the results obtained in the simulation. Problem 13.15: The number of cars arriving per hour at Lundberg’s Car Wash during the past 200 hour

> The number of cars arriving per hour at Lundberg’s Car Wash during the past 200 hours of operation is observed to be the following: NUMBER OF CARS ARRIVING FREQUENCY 3 or fewer ……â€&

> Clark Property Management is responsible for the maintenance, rental, and day-to-day operation of a large apartment complex on the east side of New Orleans. George Clark is especially concerned about the cost projections for replacing air conditioner com

> What are the major differences between PERT and CPM?

> Ye Olde Creamery, a popular ice cream store on campus, has one line for its tasty treats. Students arrive at the Creamery about one every minute. Because of the new automated “Wave N Pay” payment system, it only takes about 40 seconds, on the average, to

> The typical subway station in Washington, D.C., has six turnstiles, each of which can be controlled by the station manager to be used for either entrance or exit control—but never for both. The manager must decide at different times of the day just how m

> A technician monitors a group of five computers that run an automated manufacturing facility. It takes an average of 15 minutes (exponentially distributed) to adjust a computer that develops a problem. The computers run for an average of 85 minutes (Pois

> One mechanic services five drilling machines for a steel plate manufacturer. Machines break down on an average of once every 6 working days, and breakdowns tend to follow a Poisson distribution. The mechanic can handle an average of one repair job per da

> For the Billy’s Bank situation in Problems 12-24 and 12-25, the salary and benefits for a teller would be $12 per hour. The bank is open 8 hours each day. It has been estimated that the waiting time cost is $25 per hour in the line. (a). How many custo

> Juhn (of Problem 12-19) is considering building a second platform or gate to speed the process of loading the fruit trucks. This, he thinks, will be even more efficient than simply hiring another loader to help out the first platform (as in Problem 12-20

> Truck drivers working for Juhn and Sons (see Problems 12-19 and 12-20) are paid a salary of $20 per hour on average. Fruit loaders receive about $12 per hour. Truck drivers waiting in the queue or at the loading gate are drawing a salary but are producti

> Juhn believes that adding a second fruit loader will substantially improve the firm’s efficiency. He estimates that a two-person crew, still acting like a single-server system, at the loading gate will double the loading rate from 4 trucks per hour to 8

> Juhn and Sons Wholesale Fruit Distributors employs one worker whose job is to load fruit on outgoing company trucks. Trucks arrive at the loading gate at an average of 24 per day, or 3 per hour, according to a Poisson distribution. The worker loads them

> What is crashing, and how is it done by hand?

> Alabama Airlines opened its doors in June 1995 as a commuter service with its headquarters and only hub located in Birmingham. A product of airline deregulation, Alabama Air joined the growing number of successful short-haul, point-to-point airlines, inc

> a. Develop a context diagram and a level 0 DFD of the acquisition/payment system at Oriental Trading. b. Prepare a document flowchart to document the acquisition/payment system at Oriental Trading.  

> a. Prepare a document flowchart that indicates the interaction and use of these documents among all departments at Beccan Company’s central facility. It should provide adequate internal control over the receipt, issuance, replenishment, and payme

> Tiny Toddlers, a manufacturer of children’s toys and furniture, is designing and implementing a distributed system to assist its sales force. Each of the 10 sales offices in Canada and 20 in the United States maintains its own customers and is re

> A recently completed feasibility study to upgrade XYZ‟s computer system shows the following benefits. Compensation figures in parentheses include wages, benefits, and payroll taxes. 1. Production a. Market forecasts, which take two $400 person-days a

> Rossco is considering the purchase of a new computer with the following estimated costs: initial systems design, $54,000; hardware, $74,000; software, $35,000, one-time initial training, $11,000; system installation, $20,000; and file conversion, $12,0

> At Big Time University (BTU) students are allowed to purchase two basketball tickets for each home game. Each ticket contains the date of the game, and the seat information, such as section, row, and individual seat number. Students pay for each game i

> The XYZ Company sells tools and parts to automotive repair shops. Shops call in orders; all orders received by noon are delivered the same day. Between 12:00 and 1:00, the system prints out schedules. From 1:00 to 5:00, drivers make deliveries accordin

> The Mesa Veterinary Hospital is run by Dr. Brigitte Roosevelt. She has two employees in the office and has asked you to develop a database to help better track her data. Dr. Roosevelt currently uses her personal computer only for word processing, but s

> We-Fix-Computers, Inc. provides spare parts and service for a wide variety of computers. Customers may purchase parts to take home for do-it-yourself repairs, or they may bring their systems in for repair, in which case they pay for both the parts and

> Develop a set of tables to implement the integrated REA diagram you developed in Problem 17.6 for the Computer Warehouse in a relational database. Specify a primary key for each table, and suggest at least one other attribute that should be included in

> Refer to Problems 17.8 and 17.9 for information about the revenue and expenditure cycles for the Computer Warehouse and use that information to draw an integrated REA diagram for both cycles.  

> Prepare a document flowchart to reflect how ANGIC Insurance Company processes its casualty claims.  

> Develop a set of tables to implement the integrated REA diagram you developed in Problem 18.3 for Sue’s Gallery in a relational database. Specify a primary key for each table, and suggest at least one other attribute that should be included in ea

> Refer to Problems 17.3 and 17.4 for information about Sue’s Gallery’s revenue and expenditure cycle activities in order to draw an integrated REA diagram of both cycles.  

> Develop a set of tables to implement the integrated REA diagram you developed in Problem 18.1 for Joe’s ice-cream shop in a relational database. Specify a primary key for each table, and suggest at least one other attribute that should be include

> Refer to Problem 17.10 and develop a set of tables to implement the REA diagram you developed for Stan’s Southern Barbeque Supply Store. Identify the primary and foreign keys for each table, and don’t forget to address any M:N relationships

> Refer to Problems 17.1 and 17.2 for information about the revenue and expenditure cycle activities for Joe’s ice-cream shop in order to draw an integrated REA diagram of both cycles.  

> The Computer Warehouse purchases its inventory from more than a dozen different vendors. Orders are placed via telephone, fax, or on the supplier’s Web site. Most orders are delivered the next day. Most orders are filled completely in one shipmen

> The Computer Warehouse sells computer hardware, software, and supplies (such as paper). Individual customers just walk into the store, select merchandise, and must pay for their purchases in full before leaving the store. Corporate customers, however,

> Develop a data model of Fred’s Train Shop’s expenditure cycle activities related to the acquisition of office equipment and other fixed assets. Fred sometimes orders multiple pieces of equipment. Vendors usually ship the entire order, but s

> Sue’s Gallery only purchases finished paintings (it never commissions artists). It pays each artist 50% of the agreed price at the time of purchase, and the remainder after the painting is sold. All purchases are paid by check from Sue’s ma

> Sue’s Gallery sells original paintings by local artists. All sales occur in the store. Sometimes customers purchase more than one painting. Individual customers must pay for purchases in full at the time of sale. Corporate customers, such as hote

> Prepare a system flowchart of the process described.  

> Joe, the owner of the ice-cream shop, purchases ice cream from two vendors. Over the years, he has developed good relationships with both vendors so that they allow Joe to pay them biweekly for all purchases made during the preceding two-week period. J

> Stan’s Southern Barbeque Supply Store orders mass-produced barbecue products from various suppliers. Stan’s maintains information about a contact person at each supplier along with all required address information. Each purchase order has t

> Joe’s is a small ice-cream shop located near the local university’s baseball field. Joe’s serves walk-in customers only. The shop carries 26 flavors of ice cream. Customers can buy cones, sundaes, or shakes. When a customer pays for a

> Use Table 16-1 to create a questionnaire checklist that can be used to evaluate controls in the general ledger and reporting cycle. a. For each control issue, write a Yes/No question such that a “No” answer represents a control weakness. F

> Match the term in the left column with its appropriate definition from the right column:  

> You have been hired to evaluate the payroll system for the Skip-Rope Manufacturing Company. The company processes its payroll in-house. Use Table 15-1 as a reference to prepare a list of questions to evaluate Skip-Rope’s internal control structur

> Match the terms in the left column with the appropriate definition from the right column.  

> The ABC Company performs its expenditure cycle activities using its integrated ERP system as follows:  Employees in any department can enter purchase requests for items they note as being either out of stock or in small quantity. The company maint

> Create a questionnaire checklist that can be used to evaluate controls for each of the four basic activities in the revenue cycle (sales order entry, shipping, billing, and cash collections). a. For each control issue, write a Yes/No question such tha

> Robinson’s Plastic Pipe Corporation uses a data processing system for inventory. The input to this system is shown in Table 11-7. You are using an input controls matrix to help audit the source data controls. Prepare an input controls matrix

>   a. Draw a system flowchart of the billing operations, commencing with the computer preparation of the meter reading forms and ending with the mailing of customer bills. b. Draw a system flowchart depicting customer payments processing, start

> The following table lists the actions that various employees are permitted to perform:  

> Agents submit a completed expense reimbursement form to their branch manager at the end of each week. The branch manager reviews the expense report to determine whether the claimed expenses are reimbursable based on the company’s expense reimburs

> Match the data security computer fraud and abuse technique in the left column with the scenario in the right column. Terms may be used once, more than once, or not at all.  

> Match the data security computer fraud and abuse technique in the left column with the scenario in the right column. Terms may be used once, more than once, or not at all.  

> Match the data related computer fraud and abuse technique in the left column with the scenario in the right column. Terms may be used once, more than once, or not at all.  

> Match the data communications-related computer fraud and abuse technique in the left column with the scenario in the right column. Terms may be used once, more than once, or not at all.  

> Match the internet related computer fraud and abuse technique in the left column with the scenario in the right column. Terms may be used once, more than once, or not at all.  

> Prepare a program flowchart to help Melanie program this process.  

> The computer frauds that are publicly revealed represent only the tip of the iceberg. Although many people perceive that the major threat to computer security is external, the more dangerous threats come from insiders. Management must recognize these p

> The BusyB Company wants to store data about employee skills. Each employee may possess one or more specific skills and several employees may have the same skill. Include the following facts in the database: date hired date skill employee date of birt

> Prepare flowcharting segments for each of the following operations: a. processing transactions stored on magnetic tape to update a master file stored on magnetic tape b. processing transactions stored on magnetic tape to update a database stored on a

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