Cars arrive at a gas station according to a poisson process


Cars arrive at a gas station according to a Poisson process with an average of 10 customers per hour. A car enters the station only if four or fewer cars are already at the gas station. The gas station has only one pump. The amount of time required to serve a car has an exponential distribution with a mean of four minutes.

a. Formulate a continuous-time Markov chain to analyze the situation of the gas station. Specify the state diagram.

b. Solve the equilibrium equations (i.e., find the steady-state probabilities).

c. What is the long-run average number of cars in the station?

d. What is the long-run fraction of potential customers that are lost?

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Operation Management: Cars arrive at a gas station according to a poisson process
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