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The problem just described is best approached by use of which quantitative method?
A. Integrated autoregressive-moving average (ARIMA) modeling.
B. Exponential smoothing, multiple parameters.
C. Queuing theory.
D. Linear programming.
Correct Answer: C
Explanation/Reference:
Explanation:
Two basic costs are involved in queuing (waiting-line) models: (1) the cost of providing service (including facility costs and operating costs), and (2) the cost of idle resources waiting in line. The latter may be a direct cost if paid employees are waiting, or an opportunity cost in the case of waiting customers. The objective of the queuing theory is to minimize the total cost of the system, including both service and waiting costs, for a given rate of arrivals. This minimization occurs at the point where the cost of waiting is balanced by the cost of providing service.
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