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What is the average number of phones the company has in store?  2. How long does a customer on average have to wait for the phone?  3. What are the total daily expenses for telephone cards?

What is the average number of phones the company has in store?  2. How long does a customer on average have to wait for the phone?  3. What are the total daily expenses for telephone cards?

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...
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Please use the attached to answer the following questions. 

1. What is the average number of phones the company has in store? 

2. How long does a customer on average have to wait for the phone? 

3. What are the total daily expenses for telephone cards? 

 

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.
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