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A Sandwich Shop near a College Has a Special Counter

question 37

Essay

A sandwich shop near a college has a special counter, open from 11 am to 1 pm, which is used exclusively for selling pre-made sandwiches. This is much faster than making sandwiches-to-order at lunch time. The clerk can handle a customer in about one minute. Customers arrive at a rate of 40 per hour on average.
a. How long (in minutes) does a customer have to wait?
b. What percentage of the time is the employee working?
c. What is the average number of customers waiting in line?
d. What is the probability of there being 3 or more customers in the system?


Definitions:

Inventory Holdings

The quantity of goods and materials on hand that are available for sale or for use in production processes.

Production Manager

An individual responsible for overseeing the production process, coordinating all activities involved in the creation of goods or services.

Long-term Debt

Loans or other forms of debt that have a repayment period of more than one year.

Cash Increase

An increase in a company's cash flow, resulting from its operational, investing, or financial activities.

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