Use This Information to Answer the Following Questions

question 31

Essay

Use this information to answer the following questions.
Cars arrive at Sparkling Clean automatic car wash at the rate of 15 per hour and follow the Poisson distribution.It takes exactly 3 minutes for each car to go through the automated process of wetting,soaping,scrubbing,and drying.
-Refer the information above.Assume that the owners of Sparkling Clean decide that in order to remain competitive in the automatic car wash business,each car should not spend more than 6 minutes in the system.The company that had installed the car wash system told the owners that they would be happy to tweak the timing of the automated washing process to achieve the desired goal of the owners.What should the service rate be? Hint: Use Excel's Goal Seek function.

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Definitions:

Optimal Plant Size

The scale of production at which a firm can produce goods at the lowest average cost, maximizing efficiency.

Fixed Factors

Resources in production that cannot be easily increased or decreased in the short term, such as land or certain machinery.

Capital-Intensive

A characteristic of industries or businesses that require large amounts of capital investment in machinery and equipment relative to labor to produce goods or services.