Response to the following problem:
Tie One On, an exclusive men's clothing store specializing in ties, is planning to develop a store in a new shopping mall. Customers are expected to arrive at the store location at random at an average rate of 40 per hour. The store will be open 10 hours per day. Service times are assumed to follow an exponential distribution. Excluding fixed costs such as wages and rent, the average sale nets $22. Clerks are paid $20/hr. including all benefits, and the cost of having a waiting customer is estimated to be $10 per customer per hour. One possibility is to have a small store staffed by 2 clerks serving at an average rate of 10 customers per hour each. This store, however, will only have room for a maximum of 3 customers to be present. Another possibility is to have a larger store with 6 clerks, each serving at a rate of 10 customers per hour. The larger store can accommodate up to a total of 15 customers. It is believed that customers who arrive when the store is full will shop elsewhere.
If the small store leases for $200 per day and the large store leases for $2000 per day, which configuration should be used?