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1. A production operation is a single-channel, single-phase, unlimited-queue-length queuing system. Products arrive at the operation at an average rate of 90 per hour, and the automated operation produces products at a constant rate of 95 products per hour. Engineering can modify the machinery at the operation to increase the production capacity to a constant rate of 105 products per hour. How much would the average lead time be reduced?
2. In Problem 1, how much would the average WIP be reduced with the improvement in lead time?
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Assume you are forecasting with an exponential smoothing model using α = 0.6. How much weight is placed on the most recent actual demand? How much weight is given to the demand one time period older than the most recent data?
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