Question: Consider the following flow diagram for processing a customer order, where each order is either Type A or Type B. Type A Activity 2A Activity

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Consider the following flow diagram for processing a customer order, where each order is either Type A or Type B. Type A Activity 2A Activity 1 Activity 3 Type B Activity 2B The exact processing times and the resources needed for each activity are listed in the table below. 1 Activity Time (minutes) Resources Used 10 Category 1 2A 10 Category I 2B 30 Category II 3 10 Category I There is one unit of Resource Category I in the system, and there are two units of Resource Category II in the system. Customers currently arrive at the rate of 2.5 per hour; one-fifth of the customers are Type A, and four-fifths of the customers are Type B. Product A generates a marginal profit of $100 per unit; product B generates a marginal profit of $110 per unit. 7. What is the bottleneck? C. A. D. Category 1 Activity 2B B. E. Category II None of the above Activity 2A 8. What is the implied utilization of Category II? B. 50% C. 92% D. 100% A. E. 33% 40%

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