Two New Checkout Scanning Systems Are Under Consideration by a Retail

question 33

Essay

Two new checkout scanning systems are under consideration by a retail store. Arrivals to the checkout stand follow the Poisson distribution with $\lambda$ = 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?

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Definitions:

Marketing Plan

A marketing plan outlines an organization's strategy for promoting its products or services, including target market analysis, marketing objectives, and specific campaigns or actions.

Situation Analysis

An assessment process that involves evaluating the internal and external factors affecting an organization's performance to identify potential opportunities and threats.

Internal Environment

Refers to the conditions, entities, events, and factors within an organization that influence its activities and choices, including its employees, management, corporate culture, and internal processes.

External Environment

All external factors outside of an organization that affect its operations, including market trends, economic conditions, and regulatory landscape.