Now consider a single server single channel queuing operation with an arrival rate of 15 per hour and service rate of 20 per hour. If the cost of waiting is $20 per hour and the cost of the server is $15 per hour, what is the total cost of the operation? How would this change if the service rate improves to 24 per hour and the cost of the server is $20 per hour? Provide your analysis.
Expert Answer
With a single server, this is M/M/1 queue model
Arrival rate, λ = 15 per hour
Service rate, μ = 20 per
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