What is the average number of customers

Assignment Help Business Management

Reference no: EM131255335

Atlantic Video:-

Atlantic Video, a small video rental store in Philadelphia, is open 24 hours a day, and--due to its proximity to a major business school--experiences customers arriving around the clock. A recent analysis done by the store manager indicates that there are 30 customers arriving every hour, with a standard deviation of interarrival times of 2 minutes. This arrival pattern is consistent and is independent of the time of day. The checkout is currently operated by one employee, who needs on average 1 .7 minutes to check out a customer. The standard deviation of this check-out time is 3 minutes, primarily as a result of customers taking home different numbers of videos.

a. If you assume that every customer rents at least one video (i.e., has to go to the checkout), what is the average time a customer has to wait in line before getting served by the checkout employee, not including the actual checkout time (within I minute)?

b. If there are no customers requiring checkout, the employee is sorting returned videos, of which there are always plenty waiting to be sorted. How many videos can the employee sort over an 8-hour shift (assume no breaks) if it takes exactly 1 .5 minutes to sort a single video?

c. What is the average number of customers who are at the checkout desk, either waiting or currently being served (within I customer)?

d. Now assume/or this question only that 10 percent of the customers do not rent a video at all and therefore do not have to go through checkout. What is the average time a customer has to wait in line before getting served by the checkout employee, not including the actual checkout time (within I minute)? Assume that the coefficient of variation for the arrival process remains the same as before.

e. As a special service, the store offers free popcorn and sodas for customers waiting in line at the checkout desk. (Note: The person who is currently being served is too busy with paying to eat or drink.) The store owner estimates that every minute of customer waiting time costs the store 75 cents because of the consumed food. What is the optimal number of employees at checkout? Assume an hourly wage rate of $1 0 per hour.

Reference no: EM131255335

Questions Cloud

What is the average number of telephones : What is the average number of telephones the company has in its store? - How long does a customer, on average, have to wait for the phone?

Discuss the roles of key project team members in this phase : Develop a two page research paper discussing the components of construction project management that occur in the pre-construction planning phase. Give an overview of the design process and who is involved with the process. Discuss the roles of key..

Know about performance appraisal and promes : Based on what you know about performance appraisal and ProMES, what are the most important features of the ProMES system? Indicate how SRU's current ProMES system does or does not abide by these important features.

Determine hourly production rate to meet demand : Work content time = 42.0 min. Assume line efficiency = 0.97, balancing efficiency = 0.92, and repositioning time = 6 sec.

What is the average number of customers : What is the average number of customers who are at the checkout desk, either waiting or currently being served.

What is the composite part concept in group technology : What are the criteria that should be satisfied to make an automated manufacturing system flexible?

How you established communications for international trade : Imagine back in time to pre-Internet days. Describe how you would have established communications for international trade in these time periods: 1935 and 1977

How is different than what is examined in macroeconomics : What are some of the larger issues that Microeconomics attempts to address? How is this different than what is examined in Macroeconomics? What can the science of Microeconomics use as examples of why this matters/how it has been successful?

Define group technology : Briefly define the three types of mechanized workpart transfer systems used in production lines.

User Account

All Pages