## Planning Process Capacity 3. FOR PARTS a AND c, PLEASE CARRY OUT ALL CALCULATIONS TO 5 DECIMAL PLACES. Cheney owns a large gas station in Vermont.

Planning Process Capacity

3. FOR PARTS a AND c, PLEASE CARRY OUT ALL CALCULATIONS TO 5 DECIMAL PLACES.

Mr. Cheney owns a large gas station in Vermont. The average and standard deviation of

inter-arrival times of cars stopping by for re-fueling is 3 minutes. If all the pumping

stations are full, cars will bypass Mr. Cheney’s gas station for one further up the road

(which also happens to charge the same price). Currently, Mr. Cheney has 6 pumping

stations and on the average, it takes 5 minutes to service a vehicle which has stopped by

for refueling. You are required to answer the following questions:

a) What percentage of the time will a customer bypass Mr. Cheney’s gas station.

b) What is the average number of customers served per hour.

c) Assume that it costs Mr. Cheney \$ 12.50 in lost profit per customer lost. It is possible

to add 3 more pumping stations at an amortized cost of \$ 1.50 per hour. Should Mr.

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This question was answered on: Oct 15, 2019

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