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John is planning on getting a haircut and wants to choose a barbershop. He narrowed his own choices down to 2 local hair salons. Lets refer to them as hair salon 1 and hair salon 2.
During busy hours, a new customer walks into hair salon 1 every 15 minutes with standard deviation of 15 minutes. At hair salon 2, a new customer walks in every 60 minutes with a standard deviation of 1 hour. Hair salon 1 has 4 barbers on staff, whereas hair salon 2 has 1 barber. Service time at each hair salons is 30 minutes with standard deviation of 30 minutes.
a) Hair salon 1 is planning to buy out hair salon 2. Hair salon 1 will then close the salon 2 operations and serve all customers, including existing hair salon 2 customers, at the salon 1 location only. Assuming that the previous traffic of salon 2 customers now flows to the salon 1 location, what is the new average inter-arrival time at salon 1 ?
b) To accommodate the new flow rate, hair salon 1 now staffs one additional barber (for a total of 5 barbers on staff). Is the new waiting time at salon 1 less than or greater than the waiting time of salon 1 before the merger? (Note: assume that the coefficient of variation of customer inter arrival times is 1).
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Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..
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