Consider an Espresso Stand with a Single Barista

question 29

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.If the arrival rate remains at 28 customers per hour and the stand's manager wants to have the average time a customer spends in the system (i.e. ,wait time and service time) to be a maximum of 6 minutes on average,then the service rate must

• A)decrease by 2 to 33 customers per hour.
• B)decrease by 3 to 32 customers per hour.
• C)increase by 3 to 38 customers per hour.
• D)increase by 2 to 37 customers per hour.

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Definitions:

Direct Labor-Hours

Direct labor-hours refer to the total hours worked by employees directly involved in the production process, used as a basis for allocating labor costs to products.

Machine-Hours

The total hours that machinery is operated during a specific period for production purposes.

Departmental Predetermined Overhead Rates

These rates are calculated to allocate manufacturing overhead costs to specific departments, based on estimated or actual overhead and activity levels.

Machine-Hours

A measure of production time using machinery; used as a basis for allocating manufacturing overhead costs to products.