Question

1.An M/M/1 system denotes a single server queuing system with exponential arrival and Poisson service time distributions. True or False

2.An iterative group process that allows experts, who may be located in different places, to make forecasts is referred to as:

A	A jury of executive opinion
	B	A sales force composite
	C	Consumer market survey
	D	The Delphi method
	E	Trend analysis

3.As service levels increase, the cost of providing service also increases, but the cost of customer dissatisfaction decreases:

True or false

Answer 1

1. Answer: False

Explanation:

An M/M/1 system assumes that there is single server and single queue to serve the customer. But it assumes the arrival process to follow Poisson distribution and the service time of the server to follow negative exponential distribution. Hence the statement given is false.

2. Answer: Option D; the Delphi Method

Explanation:

The Delphi method is an iterative method that allows the experts who may be located in different places to make the forecast. It includes three different types of participants which are decision makers, staff personal and respondents. The decision making group consists of the experts who makes the forecast. Jury of executive opinion begins with opinions of small group of high level managers and results in group estimate of demand. In sales force composite model each sales person estimate sales in own region and then combined with district and national levels for creating overall forecast. Consumer market survey takes opinion from the customers regarding their future purchasing plans and Trend analysis make use of the historical data for forecasting.

3. Answer: True

Explanation:

As the service level increases, the service costs also increases. But the service improves in speed and the number of customers lost due to poor service and long queues reduces. Hence the cost of customer dissatisfaction also decreases by avoiding long queues and ensuring productivity.