Compute cost of the first system per minute

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Reference no: EM1377120

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? Place answers on lines provided.

a. Cost of the first system per minute: $___________ per minute

b. Cost of the second system per minute: $__________ per minute

c. Which system would you recommend? 1 or 2?

Reference no: EM1377120

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