Question
A pharmacy has a counter with the capacity to serve one customer at a time, and a waiting area for 5 customers. The washing service
A pharmacy has a counter with the capacity to serve one customer at a time, and a waiting area for 5 customers. The washing service time follows an exponential distribution with an average of 10 minutes. Customer arrivals at the entrance of the establishment could be modeled as Poisson arrivals with an average of 7 customers per hour. Each client that is served, on average generates a profit of $ 5.00. In this scenario, there is the possibility of renting 5 additional waiting spaces for clients at a cost of $ 40 per day. The pharmacy's hours of operation are 12-hours per day. It is desired to estimate whether the rental of the additional space would be cost-effective. Hint: To answer the exercise, you must calculate for each scenario the average number of clients per hour and per day that are served. Detailed answer with formulas please.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started