Question 1

a. How often is the reservation busy (his utilization rate)

The reservation is 52% busy
b. What is the average number of callers waiting to make a reservation?

c. What is the average number of customers in the system?

d. What is the average time in minutes that diners must wait before their calls are transferred to the agent?

e. What is the average time in minutes for diners to complete their reservations?

f. What is the probability of a customer NOT having to wait for their call to be answered
P n = (1 - r) r n
If r = 0.667 then
P 0 = ( 1 - 0.667) 0.667 0 = 0.333
P 1 = ( 1 - 0.667) 0.667 1 = 0.222
P 2 = ( 1 - 0.667) 0.667 2 = 0.148
(P 0 + P 1+ P 2) = 0.703
g. What is the probability of there being 2 customers in the system?
 h. What is the probability of there being 5 or more customers in the system?

i. What is the purpose of studying queuing problems in Management Science?

It helps solve queuing problems in real life situations
Question 2
a. Determine the Earliest Starting Time, Earliest Finishing Time, Latest Starting Time and Latest Finishing
Time of each activity (In the Project Network).
 b. Determine the Slack Time for each activity (In the Project Network)
Excel sheet for slack time is as below:

Activit Immediate Expected ES EF LS LF Slac

y Predecessor Time T T T T k
A 10 0 10 0 10 0
B 7 0 7 23 30 23
C 3.5 0 3.5 19.5 23 19.5
D A 20 10 30 10 30 0
E C 7 3.5 10.5 23 30 19.5
F BDE 10 30 40 30 40 0
G BDE 7.5 30 37.5 47.5 55 17.5
I E 15 40 55 40 55 0
H F 11 40 51 51 62 11
J GH 7 55 62 55 62 0
K IJ 7 62 69 62 69 0
L GH 2.5 55 57.5 66.5 69 11.5
c. Estimate the Project completion Time
The project completion days is 69 days
d. Determine the Critical Path
Question 3
Variables:

Let X = no of Antique wood chairs to be produced

Y = No of Modern wood chairs to be produced

ii)

Objective function is maximize profit

Z = max 22X + 15Y

iii)

Constraints:

3X + 2Y <= 450 (Oak wood availability)

2X + 1Y<=420(Pine wood availability)

2X + .5Y <= 300(Time availability)

X,Y>=0 (Non negativity constraints)

iv)

v)

Let X = no of Antique wood chairs to be produced = 150

Y = No of Modern wood chairs to be produced = 0

Profit = 3300
vi) From sensitivity report we can say that if there is increase in one labor hour, there will be increase in $2 profit.

If there are 20 hours available than Increase in profit = 2*20 = 40

Total profit = $3340