Scanning systems are under consideration

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Two new checkout scanning systems are under consideration through a retail store. Arrivals to the checkout stand follow the Poisson distribution with; = 2 per minute. The cost for waiting is $18 per hour. The first system has an exponential service rate of 5 per minute and costs $10 per hour to operate. The second system has an exponential service rate of 8 per minute and costs $20 per hour to operate. Which system should be chosen?

Reference no: EM13720371

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