A Small Store Is Trying to Determine If Its Current

question 11

Essay

A small store is trying to determine if its current checkout system is adequate.Currently,there is only one cashier,so it is a single-channel,single-phase system.The store has collected information on the interarrival time,and service time distributions.They are represented in the tables below.Use the following two-digit random numbers given below to simulate 10 customers through the checkout system.What is the average time in line,and average time in system? (Set first arrival time to the interarrival time generated by first random number.
Random numbers for interarrival times: 07,60,77,49,76,95,51,16,14,85
Random numbers of service times: 57,17,36,72,85,31,44,30,26,09

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Definitions:

Unit Selling Price

The cost for one unit of a product when it is sold.

Unit Variable Costs

Costs that vary directly with the volume of production or sales, such as materials and labor, on a per-unit basis.

Contribution Margin Ratio

A financial metric that measures the portion of revenue remaining after variable production costs that can contribute to covering fixed costs and generating profit.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit, indicating how much each unit sold contributes to fixed costs and profit.