Customers at an amusement park arrive at the rate of 10 customers per hour. The entry booth is staffed by one employee. The mean service time at the booth to provide service to each customer is 5 min. The arrival rate follows a Poisson distribution, and the service time at the booth follows a negative exponential distribution. It is estimated that the cost of customer waiting time associated with dissatisfied customers and loss of goodwill is $12 per hour. The employee at the service booth is paid $8 an hour. Determine the average customer waiting time cost per day in the queue. Assume total hours of operation as 10 hr per day.
A. $599
B. $625
C. $500
D. $700
C. $500
Business
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