Consider a bike rental shop that maintains a fleet of (homogeneous) bikes in the Toronto Islands. We assume each new customer will only rent one bike and must return the bike to the shop after the ride. The shop owns (and rents out) 30 bikes. The bike rental shop charges a flat price of $10 per ride. The customers ride the bikes for exactly 1 hour (constant). Based on the historical data, the shop has indicated that the customer arrival process has an average inter-arrival time of 2.5 minutes with a standard deviation of 5 minutes. Currently, the shop has one single line for new customers.

Required

a) What is the average utilization of each bike?

b) What is the average number of customers waiting in the queue (queue length)?

c) How long does each customer spend in the queue waiting for a bike in minutes?

d) Next, assume the ride duration follows an exponential distribution with an average ride duration of 1 hour. What is the average number of customers waiting in the queue (queue length) in this case? (Please show all your work)

Answer rating: 100% (QA)

a Utilization 160 001667 or 1667 The average utilization of each bike is 160 001667 or 1667 The aver... View the full answer