Consider an Espresso Stand with a Single Barista

question 9

Multiple Choice

Consider an espresso stand with a single barista.Customers arrive to the stand at the rate of 28 per hour according to a Poisson distribution.Service times are exponentially distributed with a service rate of 35 customers per minute.The average time in minutes a customer spends in the system i.e. ,waiting and being served) is

• A)0.114 minute
• B)0.143 minute
• C)6.84 minutes
• D)8.58 minutes

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material, labor, and manufacturing overhead costs.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue; calculated by dividing sales by total assets.

Producing Sales

The process of generating revenue through the selling of goods or services.