[5] A supplier delivers a hard to manufacture part to a business, with arrivals according to...

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[5] A supplier delivers a hard to manufacture part to a business, with arrivals according to an exponential distribution with a rate of 1 delivery/4 days. Assume all delivery times are independent. The contract calls for an incentive payment for delivery within 2 days and a penalty for delivery after 6 days. If the incentive payment is $1200.00, the usual contract payment is $1000.00 and the penalty payment is $800.00 [a] What is the expected payment the supplier will receive if they just maintain delivery according to the exponential distribution with rate 1 delivery/4 days? [b] An enterprising manager, wants to know how many deliveries within the 2-day window would he get in the next 100 deliveries. What is the expected number of deliveries within the 2- day window. [c] What is the probability the supplier sees 30 or less deliveries with an incentive payment out of the next 100 deliveries made? [5] A supplier delivers a hard to manufacture part to a business, with arrivals according to an exponential distribution with a rate of 1 delivery/4 days. Assume all delivery times are independent. The contract calls for an incentive payment for delivery within 2 days and a penalty for delivery after 6 days. If the incentive payment is $1200.00, the usual contract payment is $1000.00 and the penalty payment is $800.00 [a] What is the expected payment the supplier will receive if they just maintain delivery according to the exponential distribution with rate 1 delivery/4 days? [b] An enterprising manager, wants to know how many deliveries within the 2-day window would he get in the next 100 deliveries. What is the expected number of deliveries within the 2- day window. [c] What is the probability the supplier sees 30 or less deliveries with an incentive payment out of the next 100 deliveries made?

Answer rating: 100% (QA)

Let X represents number deliveries made Also it exponential is X Exp 1 ... View the full answer