Question: Question 3:

A team of insurance policy processors completes jobs at a rate of two per hour, with actual processing times following an exponential distribution. Jobs arrive at a rate of about one every 32 minutes, and the inter-arrival times are also considered to be exponential. Use queuing theory to answer the following questions. Hint: this is an M|M|1 queue.

a. What is the average cycle time? (In this setting I mean what is the average time between the arrival and completion of a job.)

b. What is the cycle time efficiency? (By this I mean the ratio of total expected processing time to the average cycle time.)