Altugrsquos coffe shop decided to install an automatic


Altug’s coffe shop decided to install an automatic coffee vending machine outside one of its stores to reduce the number of people standing in line inside. Mehmet Altug charges $3.50 per cup. However it takes too long for people to make change. The service time is a constant 1.50 minutes and the arrival rate is 30 per hour ( Poisson distributed)

The average wait time in the line =   (minutes)

The average number of customers waiting in the line =     (customers) (three decimal points)

Mehmt raises the price to $5 per cup and takes 30 seconds off the service time. However, because the coffee is now so expensive, the arrival rate drops to 24 per hour.

The average wait time in the line =     (minutes)

The average number of customers waiting in the line =     (customers) (three decimal points)

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Operation Management: Altugrsquos coffe shop decided to install an automatic
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