Question
RentAPhone is a new service company that provides European mobile phones to American visitors to Europe. The company currently has 105 phones available at Charles
RentAPhone is a new service company that provides European mobile phones to American visitors to Europe. The company currently has 105 phones available at Charles de Gaulle Airport in Paris. There are, on average, 32 customers per day requesting a phone. These requests arrive uniformly throughout the 24 hours the store is open. (Note:This means customers arrive at a faster rate than 1 customer per hour.) The corresponding coefficient of variation is 1. Customers keep their phones on average 72 hours. The standard deviation of this time is 84 hours. Given that RentAPhone currently does not have a competitor in France providing equally good service, customers are willing to wait for the telephones.
(e) How would waiting time change if the company decides to limit all rentals to exactly 72 hours? Assume that if such a restriction is imposed, the number of customers requesting a phone would be reduced to 25 customers per day.
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