OPERATIONS MANAGEMENT FUNDAMENTALS - Operational Challenges Due to Variability - Analyzing Wait Times

4 important questions on OPERATIONS MANAGEMENT FUNDAMENTALS - Operational Challenges Due to Variability - Analyzing Wait Times

What is the formula to estimate wait times?

Average Wait Time = Average Line Length / Average Arrival Rate

True or False.  In process analysis terms, wait time is equivalent to flow time and people in line qualify as inventory.

True

What is the formula of average utilization?

Utilization = Demand / Capacity = Arrival Rate / Service Rate
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True or False. The formula only works if utilization is below 100%

True

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