Suppose that all car owners fill up when their tanks are exactly half full. At the present

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Suppose that all car owners fill up when their tanks are exactly half full.† At the present time, an average of 7.5 customers per hour arrive at a single-pump gas station. It takes an average of 4 minutes to service a car. Assume that interarrival times and service times are both exponential.

1 For the present situation, compute L and W.

2 Suppose that a gas shortage occurs and panic buying takes place. To model this phenomenon, suppose that all car owners now purchase gas when their tanks are exactly three-quarters full. Since each car owner is now putting less gas into the tank during each visit to the station, we assume that the average service time has been reduced to 3 1 3

minutes.

How has panic buying affected L and W?

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