Customers in a Small Retail Store Arrive at the Single

question 38

Essay

Customers in a small retail store arrive at the single cashier at the rate of 10 per hour. The average service time for the cashier is five minutes. Arrivals tend to follow a Poisson distribution, and service times follow an exponential distribution.
a. What is the average utilization of the cashier?
b. What is the average number of customers in the system?
c. What is the average number of customers in line?
d. What is the average time spent in the system?
e. What is the average time spent in line?

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Definitions:

Restrictive Financing Policy

A financial strategy that involves maintaining lower levels of current assets or using more short-term financing to fund those assets, aiming to reduce costs but increase risk.

Cumulative Cash Surplus

The total amount of cash that a business has generated over a certain period, after accounting for all cash inflows and outflows.

Financial Foreclosure

The process by which a lender takes possession of a property used as collateral for a loan that is in default.