Calculate the arrival rate and service rate

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Question: On average, 5 patients per hour come to the clinic (Poisson). The average time to serve a patient is 27 minutes (exponential). The clinic has 2 doctors. When its waiting room is full (15 places), the clinic directs new patients to the emergency room.

a) calculate the arrival rate, service rate, # of servers and queue capacity.

b) We want to reduce the average time spent in the waiting room to less than 40 minutes. 3 possibilities:
1- reduce the average service time to 20 minutes per patient by hiring a nurse practitioner ($100/hour)
2- reduce the size of the waiting room. $10 per place collected.
3- add a doctor ($200/hour)
In addition, the clinic suffers a loss of opportunity of $200 for each patient redirected to the emergency room.

Repeat the calculations in a) and calculate the total cost of each option. Based on costs, which option do you recommend?

Reference no: EM133650232

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