Ye Olde Creamery, a popular ice cream store on campus, has one line for its tasty treats. Students arrive at the Creamery about one every minute. Because of the new automated “Wave N Pay” payment system, it only takes about 40 seconds, on the average, to place and then pay for an order as students need only hold their cell phones over the “Wave N Pay” device and the system automatically deducts the cost of the ice cream cone from their account. However, the “Wave N Pay” system is finicky and is often offline, causing students to pay with cash. This causes the average order and pay times to double and a long line to form, forcing Ye Olde Creamery to open another order and pay station. Having two order and pay stations open (with just one line) costs the Creamery an extra $12.00 an hour while upgrading the “Wave N Pay” system to never go offline would cost $1200. Assuming Poisson arrivals and negative exponential service times compare the operation of Ye Olde Creamery with the two different configurations. Given the additional costs involved, what should the management of Ye Olde Creamery do?
Answer to relevant QuestionsAlthough Ken Brown (discussed in Problem 3-17) is the principal owner of Brown Oil, his brother Bob is credited with making the company a financial success. Bob is vice president of finance. Bob attributes his success to his ...List five of the simulation software tools that are available today.Resolve Problem 14- 12 (Goodeating Dog Chow) for five periods.In Problem 14- 12, Goodeating Dog Chow Company produces a variety of brands of dog chow. One of their best values is the 50-pound bag of Goodeating Dog Chow. ...In using the decomposition method, the forecast based on trend is found using the trend line. How is the seasonal index used to adjust this forecast based on trend? Why is the central limit theorem so important in quality control?
Post your question