Two one-barber shops sit side by side in Dunkirk Square. Each shop can hold a maximum of

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Two one-barber shops sit side by side in Dunkirk Square. Each shop can hold a maximum of four people, and any potential customer who finds a shop full will not wait for a haircut. Barber 1 charges $15 per haircut and takes an average of 15 minutes to complete a haircut. Barber 2 charges $11 per haircut and takes an average of 10 minutes to complete a haircut. On average, 10 potential customers arrive per hour at each barber shop. Of course, a potential customer becomes an actual customer only if he or she finds that the shop is not full. Assuming that inter-arrival times and haircut times are exponential, which barber will earn more money?

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Practical Management Science

ISBN: 978-1305250901

5th edition

Authors: Wayne L. Winston, Christian Albright

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