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Tom Jones, the mechanic at Golden Muffler Shop, is able to install new mufflers

ID: 366125 • Letter: T

Question

Tom Jones, the mechanic at Golden Muffler Shop, is able to install new mufflers at an average rate of 3 per hour (or about 1 every 20 minutes). Customers seeking this service arrive at the shop on the average of 2 per hour. The owner of the Golden Muffler Shop estimates that the cost of customer waiting time, in terms of customer dissatisfaction and lost goodwill, is $10 per hour of time spent waiting in line. Assume that the salary of Tom Jones employee is $10 per hour. Find the total expected costs over an 8-hour day.

Explanation / Answer

Type B Comment Arrival rate A 2 Service rate S 3 Utilization ratio U=A/S 0.666667
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