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Pete's Market is a small local grocery store with only one check-out counter

Accounting Aug 15, 2020

Pete's Market is a small local grocery store with only one check-out counter. Assume that shoppers arrive at the check-out lane according to a Poisson probability distribution, with an arrival rate of 15 customers per hour. the check-out service times follow an exponential probability distribution, with a service rate of 20 customers per hour.

If the manager's service goal is to limit the waiting time prior to beginning the checking out process to no more than five minutes, what recommendations would you provide regarding the current check-out system?

(Note you need to compute the Wq and W before answering this question) 

 

Group of answer choices

 

 

The current checkout service is good , and does not need improvement.

 

The check out service is long but does but it does not need yet improvement.

 

Needs addtional information before giving a recommendation.

 

The checkout service needs improvement

Expert Solution

The correct option is D i.e.,

The checkout service needs improvement

 

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