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Management Studies

Mr. Chips manufactures an automated vending machine that can prepare a single order of french fries in an average of 40 seconds. The company has placed one of its machines in the Student Center, where it believes customers will arrive according to a Poisson process with a mean rate of 1 per minute. (i) Mr. Chips is considering placing a second french-fry vending machine in the Student Center. Given the current vending machine service level, would it be worthwhile for Mr. Chips to do this? Justify your answer quantitatively.

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Operation Management, Management Studies

Category:- Operation Management
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