What is the average number of people in line

Assignment Help Business Management

Reference no: EM131261052

Altug's Coffee Shop decides to install an automatic coffee vending machine outside one of its stores to reduce the number of people standing in line inside. Mehmet Altug charges $3.50 per cup.

However, it takes too long for people to make change. The service time is a constant 3 minutes, and the arrival rate is 15 per hour (Poisson distributed).

a) What is the average wait in line?

b) What is the average number of people in line?

c) Mehmet raises the price to $5 per cup and takes 60 seconds off the service time. However, because the coffee is now so expensive, the arrival rate drops to 10 per hour. Now what are the average wait time and the average number of people in the queue (waiting)?

Reference no: EM131261052

Questions Cloud

Do you find hotrod explanation credible explain : PRS303 Hotrod and the Case of the Lethal Floormats Case Study. Provide advice to Hotrod's CEO and senior management on the strategies to implement in order to recover their loss in reputation. Analyse the actions of Hotrod in relation to image resto..

Find the average number of trucks in the unloading system : Find the average number of trucks in the unloading system, the average time per truck in the system and the utilization rate for the bin area.

What is the lifo reserve and when is it used : What is the effect on the current period income statement and the balance sheet when inventories are written down using the lower of cost or market method? What is the effect on future period income statement and balance sheets?

Find an article from a top national newspaper : Find an article from a top national newspaper (USA Today, New York Times, Wall Street Journal...) that discusses an economic topic which we talked about in class and write a paper describing how the topic was used in the article.

What is the average number of people in line : What is the average number of people in line? - Mehmet raises the price to $5 per cup and takes 60 seconds off the service time.

Explain f.o.b. shipping point and f.o.b. destination : Why do the four inventory costing methods produce different amounts for the cost of ending inventory and cost of goods sold when purchase prices are changing?

Describe the risks and benefits with leading and meeting : If you are pursuing top talent in human capital rich industries (e.g., software engineering), lagging the market may keep you from competing for market share against your competitors.

What is the role of the investment banker : What different institions will be used, and what is the role of each? What is needed for the entity to go public? What is the role of the investment banker? What will potential investors seek? How will financial and capital markets affect the entity'..

Benefits and drawbacks of each preference : In a team, there are some who prefer to take the initiative and others who prefer to be told what to do, what are the benefits and drawbacks of each preference?

User Account

All Pages