Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please solve the question! Consider a library. They carry physical and digital copies of books for borrowing. For a new bestseller, they have six digital

Please solve the question!

Consider a library. They carry physical and digital copies of books for borrowing. For a new bestseller, they have six digital copies and four physical copies. This question only concerns digital borrowing. Note that one digital copy can be borrowed by a single customer at a given time. Customers keep the books on average for 10 days and on average, two customers a day requests the book. 75% of the customers request a physical copies and 25% request a digital copy. If no digital copies are available for borrowing, customers join a virtual line and immediately get access to a copy once another customer returns one. You may assume that customer arrivals follow a Poisson process and service times are exponential. You may use the waiting lines spreadsheet to answer this question.

a. The librarys internal performance metrics dictate the average waiting time should not exceed 3 days. Is the library meeting this performance metric? Please justify your answer by providing the relevant performance metric from the spreadsheet.

b. On average, what is the number of customers waiting to get a digital copy of the book? Please justify your answer by providing the relevant performance metric from the spreadsheet.

c. Based on the results of a recent marketing study, the cost to make a customer wait is $2.2 per day while the daily cost of having a digital copy of a book is $1.65. If the objective is to minimize total daily cost, how many digital copies of this book should the library keep?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Retailing Management

Authors: Michael Levy, Barton A Weitz

8th Edition

0073530026, 9780073530024

More Books

Students also viewed these General Management questions