Determine average time a customer spends in the store


Response to the following problem:

At Dolly Foods, customers spend an average of 25 minutes selecting their groceries and checking out by entering a single-line queue served by two cashiers. The service times required for the cashiers to check out customers follow an exponential distribution and average 4 minutes. Customers arrive at the cashier counter according to a Poisson distribution at the average rate of 8 customers per hour.

a. Determine:

(i) the average time a customer spends in the store;

(ii) the average number of customers waiting in line prior to being checked out;

(iii) the proportion of customers who will have to wait in line.

b. What assumptions did you make in part (a)?

 

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Cost Accounting: Determine average time a customer spends in the store
Reference No:- TGS02119332

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