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QUESTION

A hardware store rents its one wood chipper. A request for the chipper arrives every 4 days with a standard deviation of 4 days. On average clients rent the chipper for one day. If a request arrives a

A hardware store rents its one wood chipper. A request for the chipper arrives every 4 days with a standard deviation of 4 days. On average clients rent the chipper for one day. If a request arrives and the chipper is not available, customers rent from another company.

What percentage of demand is lost and what is the utilization of the wood chipper?

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