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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.
Using your own experience also or resources, do you agree? Provide examples also supporting evidence from multiple sources to support your position.
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