A new shopping mall is considering setting up an information desk manned by one employee. Based upon information obtained from similar information desks, it is believed that people will arrive at the desk at a rate of 20 per hour. It takes an average of 2 minutes to answer a question. It is assumed that the arrivals follow a Poisson distribution and answer times are exponentially distributed.
Assume that the information desk employee earns $10 per hour. The cost of waiting time, in terms of customer unhappiness with the mall, is $12 per hour of time spent waiting in line. Assume there is an 8-hour day. Answer the following questions. Step by step how to do?
What is the utilization of the desk employee?
What is the total number of arrivals per day?
What is the expected time a person spends waiting in line?
What is the total waiting time per day?
What is the total cost for waiting per day?
What is the total cost (salary + waiting cost) per day?