What is the average time customer spends waiting

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Reference no: EM132301712

At an airline service center, customers arrive on average at a rate of 18 per hour. The average service rate 4.2 per hour. Assume Poisson arrivals and exponential service times.

a) What is the minimum number of servers required? 5 servers 18/4.2 = 4..28… so 5

b) What is the average time a customer spends waiting in line if there are 5 identical servers?

c) How many minutes on average does a customer spend in the system if there are 5 identical servers?

d) Suppose the airline service center is open and staffed 18 hours each day, seven days a week. Suppose each service center staff member is paid $20 per hour and the customer’s waiting time is estimated to be valued at $40/hour. How many staff members should there be to minimize the total cost – and what is the total daily cost to provide the service (including cost for the rental office staff and for the customer’s waiting time)? Number of staff members = ___________ Average total daily cost = ___________

e) Suppose the customer’s estimated time waiting time value is not known (it is not $40/hour). What range of values for the customer’s waiting time value make 8 servers provide the lowest total cost? Waiting time range of values = ___________

Reference no: EM132301712

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