Homework Help is Here – Start Your Trial Now!
Business
Operations Management
Use the attached to answer the follwoing questions. 1. Assume RentAphone could buy additional phones for $500 a piece. Is it worht buying one additional phone? justify your answer.  2. How would waiting time change if the company decides to limit all rentals to exactly 72 hours? Assume that if such a stetiction is imposed, the number of customers requesting a phone would b reduce to 20 customers per day. Enter the new waiting time in hours.

Use the attached to answer the follwoing questions. 1. Assume RentAphone could buy additional phones for $500 a piece. Is it worht buying one additional phone? justify your answer.  2. How would waiting time change if the company decides to limit all rentals to exactly 72 hours? Assume that if such a stetiction is imposed, the number of customers requesting a phone would b reduce to 20 customers per day. Enter the new waiting time in hours.

Practical Management Science
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...
See similar textbooks
icon
Related questions
Question

Use the attached to answer the follwoing questions.

1. Assume RentAphone could buy additional phones for $500 a piece. Is it worht buying one additional phone? justify your answer. 

2. How would waiting time change if the company decides to limit all rentals to exactly 72 hours? Assume that if such a stetiction is imposed, the number of customers requesting a phone would b reduce to 20 customers per day. Enter the new waiting time in hours. 

Problem 2: RentAPhone is a new service company that provides European mobile phones to American visitors to Europe. The company currently has 80 phones available at Charles de Gaulle Airport in Paris. There are, on average, 25 customers per day requesting a phone. These requests arrive uniformly throughout the 24 hours the store is open. The corresponding coefficient of variation is 1. Customers keep their phone on average 72 hours. The standard deviation of this time is 100 hours. Given that RentAPhone currently does not have a competitor in France providing equally good service, customers are willing to wait for the phones. Yet, during the waiting period, customers are provided a free calling card. Based on prior experience, RentAphone found that the company incurred a cost of $1 per hour per waiting customer, independent of day or night.
Transcribed Image Text:Problem 2: RentAPhone is a new service company that provides European mobile phones to American visitors to Europe. The company currently has 80 phones available at Charles de Gaulle Airport in Paris. There are, on average, 25 customers per day requesting a phone. These requests arrive uniformly throughout the 24 hours the store is open. The corresponding coefficient of variation is 1. Customers keep their phone on average 72 hours. The standard deviation of this time is 100 hours. Given that RentAPhone currently does not have a competitor in France providing equally good service, customers are willing to wait for the phones. Yet, during the waiting period, customers are provided a free calling card. Based on prior experience, RentAphone found that the company incurred a cost of $1 per hour per waiting customer, independent of day or night.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 10 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS