Question
Customers arrive at a business at an average rate of 40 per hour. The business operates 12 hours per day and 6 days per week.
Customers arrive at a business at an average rate of 40 per hour. The business operates 12 hours per day and 6 days per week. A queuing analysis shows that the average time a customer spends in line before being served is 10 minutes. The business values its customers' time at $30 per hour. If it can improve its service rate so that the average time in line is reduced to 6 minutes, then how much total value do customers save in one week?
A. $144
B. $5,760
C. $14,400
D. None of the above
If for a "finite queue length" model having one service point the maximum length for the queue is 12, then as this model is presented in your text the value for M is
A. 0
B. 11
C. 12
D. 13
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