Reduce their operating cost

Assignment Help Operation Management

Reference no: EM131479086

ABC Airlines wanted to reduce their operating cost. They hired a consultancy service to look in to various options. One of the options suggested is eliminate the manned Check-in counters and introduce electronic check-in stations. ABC Airlines wanted to do the trial in one airport to see the impact. They used the Indianapolis Airport for their study. The observation is as follows

Average 2 customers arrive per minute and it takes 4 minutes to service a customer. They installed 10 Electronic Check-in counters. They promised if the average waiting time exceeds 1 minutes they will pay $ 10 gift voucher towards the next ticket purchase.

1) Consider a system with single server to serve customers. The customers’ arrival rate is 5 per hour and the server’s service rate is 10 per hour. If we take a look of the system at several random times, shall we observe a queue of customers in the system? Explain the reason.

Scenario 1: Assume the service rate is 10 per hour, Deterministic (D)

Scenario 2: Assume the Service rate is 10 per hour, mindless (M)

Scenario 3: Assume all the 5 customers arrive within a span of 20 minutes

Reference no: EM131479086

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