Refer to the data in Problem C.3. Jonathan Trott, the manager of the driver license center, is interested in computing the per day total cost of the waiting line system at the center. He has estimated that the cost of waiting time associated with a dissatisfied customer and loss of good will is $35 per hour and the employee at the center with a single server is paid $20 an hour. Assume that the shop is open 10 hours per day. Given this information and the data in Problem C.3, compute:

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

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

3. Refer to Problem C.9. If the estimated that the cost of waiting time associated with a dissatisfied customer and loss of good will is $35 per hour and each employee at each of the two servers is paid $20 an hour, answer the questions in parts a) and b).

4. Based on your answers to b) and c), should Jonathan Trott use a single server or two servers?

Data from problem C.3

The local driver license center uses a single-server, single-line, single-phase system when processing license renewals. Customers arrive at the facility according to a Poisson distribution at the rate of 10 customers per hour. The time to process a license renewal is an average of 4 minutes per customer with the service times following a negative exponential distribution. The manager of the license center, Jonathan Trott, is concerned with the center’s waiting line system. He cannot understand why waiting lines form at the license center when the average service rate is greater than the average arrival rate. The customers come from an infinite population, patiently wait for their turn in the queue, and are served on a first-come, first served basis. Jonathan Trott would like you analyze the Center’s waiting line system. What are your findings and conclusion about the center’s waiting line system?