customers arriving at a booth form a single line with Poission dsbn. Average arrival time is 5
Question:
customers arriving at a booth form a single line with Poission dsbn. Average arrival time is 5 mins. The booth attendant(1 person) takes 4 mins to serve a customer. In order to alleviate the pain of waiting, they launch a friendly cup cake to anyone who waits in line more than 7 mins. cup cake costs the owner $3
1) what is the avg number of customers waiting in line? what is expected total cost associated with cup cakes promotion? Owner wants to suspend cake promotion and now wants to hire a booth attendant for $8/hr. old employee will get the tickets from customers while new employee will scan the ticket and average service time can be reduced to 3 mins.
2) if additional employee is hired, what will be average number of customers in checkout system?
3) from Total Cost point of view, would it be worthwhile to hire an additional employee? if answer is no, what is maximum wage rate that employee should be hired at?
Expert Answer:
1 The average arrival time is 5 mins The booth attendant1 person takes 4 mins to serve a customer In ... View the full answer
