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A community is serviced by two cab companies. Each company owns two cabs, and the two companies are known to share the market equally likely. The calls arrive to each company at the rate of 10 calls/hr and follow a Poisson distribution. The average time (service time) per ride is 8 minutes, and follows an exponential distribution. A new investor is considering to buy both companies and consolidate them into one company citywide. Analyze the two models and suggest to the new investor the best business model.

The first model has two queuing systems, independent from each other, with an λ= 10 calls/hr and an E[S] = 8 minutes each, and two servers (the two cabs) – M/M/2.

The second model has one queuing system, with an λ = 20 calls/hr and 4 servers (4 cabs), with an E[S] = 8 minutes each - M/M/4.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92525341

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