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ID: 329979 • Letter: V
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v Question Completion Status » «| ?| Question 2 of 29 Moving to another question will save this response. Question 2 Save Answer 0.5 points A food cart sells Indian food (Cory's favorite!). On average, 25 customers arrive per hour (randomly distributed throughout the hour, much like real life). It is able to serve 30 customers per hour. The food cart pays one server $15 an hour and estimates that the cost of a customer waiting in line for an hour is $12 (from lost revenue of reneging, reputational damage, etc.). What is the cost of servers plus the cost of waiting per hour? « | |Explanation / Answer
Given Arrival Rate ? = 25/hour
Service Rate ? = 30/hour
? (Utilization) = ?/? = 25/30 = 0.833
Server cost (Cs)= 15 $/hour
Waiting cost (Cw) = 12 $/hour
Lq = Number of customers in the queue = Lq = ?2/1-?
Lq = (25/36)/(1-5/6) = 25/6
Total cost = Cw*Lq + Cs*s = 12*(25/6) + 15*1 = 65 $
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