Customers arrive at the lobby of the exclusive and expensive Ritz Hotel at the rate of 40 per hour (Poisson distributed) to check in. The hotel normally has three clerksavailable at the desk to check guests in. The average timefor a clerk to check in a guest is four minutes (exponentially distributed). Clerks at the Regency are paid $12 perhour and the hotel assigns a goodwill cost of $2 per minutefor the time a guest must wait in line. Determine if the present check-in system is cost effective; if it is not, recommend what hotel management should do

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter12: Queueing Models
Section12.5: Analytic Steady-state Queueing Models
Problem 9P
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Customers arrive at the lobby of the exclusive and expensive Ritz Hotel at the rate of 40 per hour (Poisson distributed) to check in. The hotel normally has three clerks
available at the desk to check guests in. The average time
for a clerk to check in a guest is four minutes (exponentially distributed). Clerks at the Regency are paid $12 per
hour and the hotel assigns a goodwill cost of $2 per minute
for the time a guest must wait in line. Determine if the present check-in system is cost effective; if it is not, recommend what hotel management should do

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ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,