Question
Terry runs a steak-burger shop near Winona, MN. Customers are waiting in a single waiting line served by a single kitchen (To simplify the matter,
Terry runs a steak-burger shop near Winona, MN. Customers are waiting in a single waiting line served by a single kitchen (To simplify the matter, let's assume that the order placement process is fast enough so that customers are being released at the same pace they arrive). The kitchen makes 18 burgers per hour. Recently, a highway is constructed near his burger shop so that the demand has increased substantially. Now he is looking at, on average, 4-minute inter-arrival time. His shop operates 8 hour a day. 1) About 1 in 4 customers will decide not to join the waiting line if they see the line has more than 4 people waiting. Each lost sales opportunity costs the business $20. Currently, how much is the total daily loss due to the long waiting line?
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