Anne is running a small video rental store. Currently she is the only employee o

Question

Anne is running a small video rental store. Currently she is the only employee of the store. Anne can process about 20 customers per hour, and the customer arriving rate is about 12 per hour. What is the average customer waiting time before he/she can finish the rental process? What is the average number of customers waiting in the line? Anne is thinking to add another employee to improve the service rate. The new employee can process 15 customers au hour. How will the above two numbers change if this owe employee is hired? Please include your calculation process.

Explanation / Answer

Answer-1

Anne can process about 20 customers per hour

i.e. 20 customers in 60 minutes    . as 1 Hour=60 minutes

So average customer waiting time before he/she can finish the rental process is

= time/workdone=60 mins/20=3 Mins per customer

Answer-2

Average number of customers waiting in the line

=No of Customer walkins per hour/No of working capacity per hour

=12/20=3/5=0.60 Numbers of customers

Answer-3

Anne want to add another empoyee with the capacity of 15 customers per hour

So total processing strength per hour at rental store=20 plus 15=35

Assuming that Same number of customers coming to Video Rental Store =12 customers per hour

So average customer waiting time before he/she can finish the rental process is

= time/workdone=60 mins/35=1.71 Mins=2 mins

And Average number of customers waiting in the line

=No of Customer walkins per hour/No of working capacity per hour

=12/35==0.34Numbers= Nil aproximately.

So Service rate improved after adding the new employee.

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