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Suppose you are the manager of a coffee shop with three servers, who each take an average of 1.7 minutes to serve a customer.
Suppose you are the manager of a coffee shop with three servers, who each take an average of 1.7 minutes to serve a customer. You are concerned about your service during peak hours,and are considering making an investment to improve service. Duringpeak hours, you have 1.3 customers per minute arriving on average.You have two options to ensure faster service: (a) hire a fourthserver at an annual cost of $38,000, or (b) rent faster dispensingmachines at an annual cost of $25,000, which would reduce servicetime to 1.25 minutes, on average. You decide to base your decisionon the number of customers who arrive during the time you can servethem. You don’t want to have a more than 10% chance of morecustomers arriving than you can serve. For instance, with yourcurrent operation, you can serve three customers in 1.7 minutes, soyou don’t want the chance of more than three customers within 1.7minutes to be greater than 10%. What should you do – continue thecurrent operation, hire a fourth server, or rent faster dispensingmachines? Please use the Plan, Do Report format and make sure toshow all key steps in your calculations