Larry Ellison starts a company that manufactures high-end custom leather bags. Hehires two employees. Each employee only begins working on a bag when a customerorder has been received and then she makes the bag from beginning to end. The average production time of a bag is 1.8 days, with a standard deviation of 2.7 days. Larryexpects to receive one customer order per day on average. The interarrival times oforders have a coefficient of variation of one. What is the expected duration, in days,between when an order is received and when production begins on the bag?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Larry Ellison starts a company that manufactures high-end custom leather bags. He
hires two employees. Each employee only begins working on a bag when a customer
order has been received and then she makes the bag from beginning to end. The average production time of a bag is 1.8 days, with a standard deviation of 2.7 days. Larry
expects to receive one customer order per day on average. The interarrival times of
orders have a coefficient of variation of one. What is the expected duration, in days,
between when an order is received and when production begins on the bag?
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