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Customers Arrive at a Fast Food Restaurant with One Server

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Customers arrive at a fast food restaurant with one server according to a Poisson process at a mean rate of 30 per hour.The server has just resigned,and the two candidates for the replacement are X (fast but expensive)and Y (slow but inexpensive).Both candidates would have an exponential distribution for service times with X having a mean of 1.2 minutes and Y having a mean of 1.5 minutes.Restaurant revenue per month is given by $6,000/W where W is the expected waiting time (in minutes)of a customer in the system.Determine the upper bound on the difference in their monthly compensations that would justify hiring X rather than Y.


Definitions:

Value Chain Philosophy

An approach focusing on the full range of activities required to create and deliver a product or service to consumers, emphasizing the addition of value at each step.

Product Delivery

The process that encompasses all steps from the placing of orders to the final receipt of a product by the end consumer, including shipping and handling.

Quality Issues

Problems associated with the inability of a product or service to meet specified standards or expectations.

Learning Organisations

Companies that continuously facilitate the learning of their members and transform themselves accordingly.

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