Refer to the data in Problem C.2. The owner of the coffee shop at the student recreation

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Refer to the data in Problem C.2. The owner of the coffee shop at the student recreation center, Amanda Murdock, is interested in computing the per day total cost of the waiting line system at the coffee shop. She has estimated that the cost of waiting time associated with a dissatisfied student and loss of good will is $15 per hour and the employee at the coffee shop is paid $10 an hour. Assume that the shop is open 10 hours per day. Given this information and the data in Problem C.2, compute:

1. Average customer waiting time cost per day in the queue

2. Total expected costs per day for the waiting line system


Data from problem C.2

The student recreation center of a state university has only one coffee shop. Students arrive at the coffees shop at an average rate of 35 per hour according to a Poisson distribution. The only employee at the coffee shop takes an average of 90 seconds to service one student. Determine the following:

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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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