a. Customers queue at the express aisle of a supermarket checkout at the rate of 16 per hour. Employees can serve one customer every three minutes. Assuming the number of arrivals follows a Poisson distribution: i. Calculate the average number of customers in the waiting line. ii. Calculate the average time a customer spends in the waiting line.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter12: Queueing Models
Section12.4: Important Queueing Relationships
Problem 6P
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a. Customers queue at the express aisle of a supermarket checkout at the rate of 16 per
hour. Employees can serve one customer every three minutes. Assuming the number
of anivals follows a Poisson distribution:
i. Calculate the average number of customers in the waiting line.
ii. Calculate the average time a customer spends in the waiting line.
b. An investment firm is considering whether to invest in the mining sector, property, or
fixed interest in the coming year. The research division has provided modelling under
various scenarios and estimated the expected profit for each choice depending on
whether economic growth is moderate, low, or in recession. It has also estimated the
probability for each economic growth scenario, as summarised in the table below:
Economic growth
Moderate
Low
Recession
Profit for each Mining
100
55
-25
choice (Smillions)
46
25
15
Property
Fixed
20
20
20
Probability 0.2
0.35
0.45
i Calculate the expected profit for each choice and state which investment the firm
should choose to maximise the expected profit.
ii. The regret table for the problem is
Economic growth
Moderate Low
Recession
0
0
45
Regret for each Mining
choice (Smillions)
30
5
Property 54
Fixed
80
35
0
Probability 0.2
0.35
0.45
Calculate the expected regret for each choice and state which investment the firm
should choose to minimise the expected regret. Is it the same alternative that was
chosen in part (i)?
Transcribed Image Text:a. Customers queue at the express aisle of a supermarket checkout at the rate of 16 per hour. Employees can serve one customer every three minutes. Assuming the number of anivals follows a Poisson distribution: i. Calculate the average number of customers in the waiting line. ii. Calculate the average time a customer spends in the waiting line. b. An investment firm is considering whether to invest in the mining sector, property, or fixed interest in the coming year. The research division has provided modelling under various scenarios and estimated the expected profit for each choice depending on whether economic growth is moderate, low, or in recession. It has also estimated the probability for each economic growth scenario, as summarised in the table below: Economic growth Moderate Low Recession Profit for each Mining 100 55 -25 choice (Smillions) 46 25 15 Property Fixed 20 20 20 Probability 0.2 0.35 0.45 i Calculate the expected profit for each choice and state which investment the firm should choose to maximise the expected profit. ii. The regret table for the problem is Economic growth Moderate Low Recession 0 0 45 Regret for each Mining choice (Smillions) 30 5 Property 54 Fixed 80 35 0 Probability 0.2 0.35 0.45 Calculate the expected regret for each choice and state which investment the firm should choose to minimise the expected regret. Is it the same alternative that was chosen in part (i)?
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