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Operations And Supply Chain Management
Found in: Page 255
Operations And Supply Chain Management

Operations And Supply Chain Management

Book edition 14th
Author(s) F. Robert Jacobs
Pages 800 pages
ISBN 9780078024023

Short Answer

Bobby the Barber is thinking about advertising in the local newspaper since he is idle 45 percent of the time. Currently, customers arrive on average every 40 minutes. What does the arrival rate need to be for Bobby to be busy 85 percent of the time?

Assume that customer arrival is Poisson distributed and service follows an exponential distribution.

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Step by Step Solution

Exponential distribution

In likelihood hypothesis and insights, the exponential distribution. The likelihood conveyance of the time between occasions in a Poisson point handle, i.e., A preparation in which occasions happen persistently and autonomously at a consistent normal rate.

The arrival rate needs to be for Bobby to be busy 85 percent of the time 

Currently, idle time = 45%

Therefore, percentage of time utilization = 100 - 45 = 55% or 0.55

Arrival rate, λ = 1 in 40 minutes = 60/40

=1.5 per hour

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