Planning service capacity involves consideration of the mean arrival rate and the mean service rate. When the mean arrival rate exceeds or gets too close to the mean service rate the quality of the service declines. The operating point is the ratio of mean service rate to mean arrival rate. According to the text, what is the best operating point for the typical service operation?
A) 120%
B) 100%
C) 90%
D) 70%
E) 57%

Question

Quizplus · Accepted Answer

The best operating point for a typical service operation is when the mean service rate is 70% of the mean arrival rate, allowing for a buffer to handle variability and maintain service quality.

Planning Service Capacity Involves Consideration of the Mean Arrival Rate