Question 1) ABC Wholesale Club has two service desks, one at each entrance of store. Customers enter at each service desk at the average of one every twelve minutes. Service time at each service desk is two minutes per customer. Determine the probability that both service clerks are idle? Find the number of customers on average, are waiting in line in front of each service desk? Compute the time that customer spend at service desk (waiting plus service time)?
Question 2) A company plans to start production of the new small appliance. Manager should decide whether to purchase motors for appliance from the vendor at $7 each or to create them in-house. Either of two processes could be used for in-house production; one would have the annual fixed cost of $168,342 and the variable cost of $5 per unit, and other would have the annual fixed cost of $192,577 and variable cost of $4 per unit. Find out the range of annual volume for which each of alternatives would be best.