The Owner of an Amusement Park Has Decided to Open

question 45

Multiple Choice

The owner of an amusement park has decided to open a second entry booth and hire another employee to service customers entering the park.Customers arrive at the rate of 20 per hour and will wait in a single line until one of the two employees is available to provide service.The average service time of both employees is 2 minutes to provide service.T The arrival rate follows Poisson distribution,and the service time follows a negative exponential distribution.It is estimated that the cost of customer waiting time associated with dissatisfied customers and loss of goodwill is $20 per hour.The employee at the service booth is paid $10 an hour.Determine the customer waiting time cost per day for the waiting line system.Assume total hours of operation as 10 hours per day.

• A)$16.67
• B)$17.67
• C)$15.67
• D)$14.56

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Definitions:

Parent Brand

The main or overarching brand under which individual products, services, or subsidiary brands are marketed.

Cannibalise Sales

A situation where a new product eats into the sales of other products within the same brand or company.

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