Q1. Cruz runs a bakery. She has an oven that bakes 20 cookies at a time. It takes 40 minutes on average for her to bake a cookie. What is the average number of cookies Cruz bakes an hour?

Q1. Cruz runs a bakery. She has an oven that bakes 20 cookies at a time. It takes 40 minutes on average
for her to bake a cookie. What is the average number of cookies Cruz bakes an hour?
Q2. Clare works at the front desk of DESB. Between 10:30am and 11:00am, 10 students stop by to ask
questions on average. It usually takes 3 minutes to answer a question. What is the average number of
students either waiting or asking questions to Clare at the front desk? (Be careful when you find the
flow rate for this question!)
Q3. Hayden commutes to school from Park City. It usually takes her 40 minutes to get to school. She
finds that there are, on average, 60 cars that travel to school each hour from Park City. What is the
average number of cars on the way to school from Park City?
Jake’s Beer, Bait, & Tackle Co. (Q4-Q6)
Jake’s Beer, Bait, & Tackle Co. is a small chain of fishing tackle stores in northern Minnesota. In 2009,
the company’s revenue was $4,300,000 and its cost of goods sold was $3,200,000. Assume 52 weeks and
365 days per year. Assume that the annual inventory holding cost for Jake’s is 40%.
Q4. Jake keeps only 5.5 days-of-supply of inventory on average because much of his inventory is live bait
and micro-brew beer, both of which have a short shelf life. What is his annual inventory turns? (Round
your answer to two decimal places)
Q5. Given that he has 5.5 days-of-supply of inventory on average, how much inventory does Jake
have on average (in $)?
Q6. What is the inventory holding cost (in $) of an item that costs Jake $20 and is sold to his customers
at $30? (Round your answer to two decimal places)
B&K Consulting (Q7-Q9)
B&K is a strategy consulting firm that divides its consultants into three classes: Associates, Managers,
and Partners. The firm has been stable in size for the last 30 years, and on average, there have been 200
Associates, 60 Managers, and 20 Partners.
The work environment at B&K is rather competitive. After four years of working as an Associate, a
consultant goes “either up or out”; that is, becomes a Manager or is dismissed from the company.
Similarly, after working as a Manager for six years, a Manager either becomes a Partner or is dismissed.
The company recruits MBAs as Associates; no hires are made at the Manager or Partner level.
Q7. How many new MBA graduates does B&K hire every year? (Hint: Think of the Associate stage
itself as a process and use Little’s law to find the number of MBA graduates that are hired each year.
The following picture may help.)
Q8. What percentage (in %) of new hires at B&K will become Managers (as opposed to being
dismissed after 4 years of working as an Associate)? (Hint: Think of the Manager stage itself as a
separate process and find how many managers should be appointment each year. The following picture
may help.)
Q9. Every year, 2 Managers are promoted to Partner level. How many years on average does a
Partner stay in the company as a Partner?
4 years
200 Associates ? Associates/year
6 years
60 Managers ? Managers/year
A Simple Process (Q10 – Q13)
Consider the following process that makes customized suits. When an order is placed, measurement is
taken, which takes 30 minutes to complete. After taking the measurement, materials are prepared and
cut, and this takes one hour. Once the materials are prepared and cut, the materials are sewed. Sewing
takes 2.5 hours on average per order. The process operates for 10 hours a day. The following picture
summarizes the process.
Q10. What is the capacity of the process in [suits/day]?