At a busy car rental office customers arrive on average at, Ask an Expert

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At a busy car rental office, customers arrive on average at a rate of 14 per hour. The average service rate 5.6 per hour. Assume Poisson arrivals and exponential service times.

a) What is the minimum number of servers required?

b) What is the average time a customer spends waiting in line if there were 4 identical servers?

c) What is the average time a customer spends in the system if there were 4 identical servers?

d) Suppose the car rental office is open and staffed 18 hours each day, seven days a week. Suppose the car rental office staff is paid $20 per hour and the customer’s waiting time is valued at $30/hour. What is the total daily cost to provide the service (including cost for the rental office staff and for the customer’s waiting time) with 4 servers?

Average total daily cost with 4 servers = ___________

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91902815

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