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College of Business |

Principles of Supply Chain Management LGMT 444

Problem Set 6

1. With an average service rate of 15 customers per hour and an average customer arrival rate of 12 customers per hour, calculate the probability that actual service time will be less than or equal to five minutes.

2. Analyze the operating characteristics of a single-channel single-phase queuing system that can handle 10 customers per hour with customer arrival rate of six per hour. In addition, calculate the probability that there are more than three customers in the system.

3. NIA Motor is an e-scooter manufacturer that employs ten people at $15 per hour. Assume you were tasked to track productivity performance measures using the data shown in the following table:

Financial Information

2018 Results

Net sales


Current assets


Net income after taxes


Current liabilities


Cost of goods sold (purchased items)


Avg. inventory value


Inputs and Outputs

Scooters produced


Labor hours


Lease payments


a. Calculate the labor productivity, lease productivity, and material productivity.

b. Calculate the multiple-factor productivity. If the multiple factor productivity for 2017 was 0.008 scooter/dollar, then what was the productivity growth from 2017 to 2018?

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