A manager is considering making changes to a single-server situation that is exp

Question

A manager is considering making changes to a single-server situation that is expected to double the service rate, and still have one server. For the sake of analysis, suppose the current system has an arrival rate of 8 customers/hour and a service rate of 10 customers per hour.

If the service rate is doubled, what impact will that have on the average number waiting in line?

B. Provide an example where you feel a double the service rate would provide for a reduced number of people waiting in line. Explain your rationale.

Explanation / Answer

1. As economic consultant to the dominant firm in a particular market, you have discovered that, at the current price and output, demand for your client

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