Question 2 In a drive through window, customers arrive at a rate of 15 per hour.

Question

Question 2 In a drive through window, customers arrive at a rate of 15 per hour. You assume Poisson arrival, but the distribution of service time is unclear. You measured the mean service time to be about 3 minutes, but the standard deviation depends on the person serving the customers. John's standard deviation is 2.4 minutes and George's standard deviation is 4.8 minutes. John is paid S12 per hour and George is paid 88 per hour. a. How long (in minutes) does a customer wait in line on the average if b. How long (in minutes) does a customer wait in line on the average if Now assume that a minute that a customer walts in line costs you 5 cents in future business. e. What is your total cost if John is serving (Hint: you need to calculate the total time spent in line by the 15 customers in one hour and maltiply by 5 cents to calculate the total cost (future reventse lost) by customers waiting in line.)? d. What is your total cost if George is serving? e. Who should you hire John or George and why?

Explanation / Answer

a. On average when John is serving the 15 customers wait for 15 *2.4 = 36min on average

b. On average when if George is serving the customers wait about 15 *4.8 = 72 min on average

c. If John is seving my total cost 1ill be 36 min * 5 cents = 180 cents

d. When George serves the total cost will be 72*5 cents = 360 cents

e. John gets paid $4 more than george while cost associated with george is still at $3.6 so I would saving 40 cents if I employ george.

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