Amanda Murdock, the owner of the coffee shop at the student recreation center in Problem C.2, to

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Amanda Murdock, the owner of the coffee shop at the student recreation center in Problem C.2, to reduce the student waiting time at the coffee shop has decided to install an automatic coffee vending machine outside her shop. Amanda charges $2.50 per cup of coffee at the vending machine. The service time at the vending machine is a constant 60 seconds per student. The arrival rate of students is Poisson distributed and is an average of 45 students per hour. 

Determine:

1. Average number students in the queue.

2. Average time a student spends in waiting in the queue

3. Amanda realized that operating the vending machine at $2.50 per cup was not profitable. Hence, she decided to raise the price to $3 per cup but reduced the service time to 45 seconds per cup. Nevertheless, because of the higher price, the arrival students dropped to 30 per hour. What are the average number students in the queue, and the average time a student spends in waiting in the queue now?

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Operations Management Managing Global Supply Chains

ISBN: 978-1506302935

1st edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

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