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During any period, a potential customer arrives at a certain facility at a probability 1/2. If there are already two people at the facility (including

  • During any period, a potential customer arrives at a certain facility at a probability 1/2. If there are already two people at the facility (including the one being served), the potential customer leaves thee facility immediately and never returns. However, if there is one person or less, he enters the facility and becomes an actual customer. The manager of the facility has two types of service configurations available. At the beginning of each period, a decision must be made on which configuration to use. If she uses her “slow” configuration at a cost of PhP30 and any customers are present during the period, one customer will be served and leave the facility with probability 3/5. If she uses her “fast” configuration at a cost of PhP90 and any customers are present during the period, one customer will be served and leave the facility with probability 4/5. The probability of more than one customer arriving or more than one customer being served in a period is zero. A profit of PhP500 is earned when a customer is served. Determine: The transition probabilities for the different decision alternatives of the problem. The expected net immediate cost (subtracting any profit from serving a customer) incurred during that period. The optimal policy using policy iteration method.

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