Blue Lotus is a bike shop located near a beach resort, which rents its bikes toguests staying in the resort. When a customer requests to rent a bike and nobikes are available (they are either with another customers or being cleaned forrental), customer waits until a bike is available. Once a bike rented out to acustomer, the customer keeps it for an average of 1 day. Upon return, the bike iscleaned and tuned-up, which takes half a day (0.5 day).Suppose Blue Lotus has 7 bikes, and demand for bike rental is 4.1 per day. Whatis the average amount of time a customer waits to receive a bike?(Hint: From the perspective of customer waiting time, 0.5 day of cleaning time wouldbe part of the processing time" so, p = 1+0.5 =1.5 days. Assume CVa = CVp = 1 inyour calculations).O 1.197 daysO2.134 daysO 0.761 daysO 5.380 days

Queuing theory is one of the popular concepts of operations management that studies how queues…

Answered: Blue Lotus is a bike shop located near…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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