Project Schedule Year

VidPhone X70 1 2 3
Development -1000 -1000
Ramp-up -750
Marketing and support -500 -500
Production Volume 40
Unit Production Cost -75
Production Costs -3000
Sales Volume 40
Unit Price 135
Sales Revenue 5400
Period Cash Flow -1000 -2250 1900
PV year 1 r=12% -1000 -2008.9285714 1514.6683673
Project NPV 1492.67
NPV 1492.67
 4 5

-500 -500
50 40
-75 -75
-3750 -3000
50 40
135 135
6750 5400
2500 1900
1779.4506195 1207.484349
 lamda
Random in nature
Arrival rate
average
9:10 9:00
9:20 9:20
9:50 9:40

Interarrival time

Steady-state Finite length of queue

Infinite Length of queue
Utlilization rate lamda/Mu <1 Queue would reach a steady-state

3 Mu 4

Poisson's distribution Service rate

Customer 1 9 9:15
Customer 2 9:20 9:35 Cusomer 1
Customer 3 9:40 9:55

average Exponential
20 minutes service time 15 minutes

When would be queue?

lamda>Mu
lamda<Mu
Served Arrivate rate lamda
Server Service rate mu

Utilization

Length of the queue Lq

Waitign time in the queue Wq
System
Length of the system Ls
Waitign time in the system Ws Wq+1/mu

Probability that there are n customers in the queue

 Project Schedule Year
VidPhone X70 1 2 3 4
Development -1000 -1000
Ramp-up -750
Marketing and support -500 -500 -500
Production Volume 40 50
Unit Production Cost -75 -75
Production Costs -3000 -3750
Sales Volume 40 50
Unit Price 135 135
Sales Revenue 5400 6750
Period Cash Flow -1000 -2250 1900 2500
PV year 1 r=12% -1000 -2008.9285714 1514.6683673 1779.4506195
Project NPV 1492.67476
NPV ₹ 1,492.67
 5

-500
40
-75
-3000
40
135
5400
1900
1207.484349
 Poisson
Arrival Rate Random Service rate
lamda 3 Mu 4

9 9:00 9:00 AM Customer 1 9:00 AM 9:15

9 9:10 9:20 AM Customer 2
9 9:40 9:40 AM Customer 3

Interarrival time 20 min service time 15 minutes

Utilization rate of serveLamda/Mu

Queue?
Steady state Finite queue lamda<Mu Yes
Infinite Queue lamda>Mu Yes
 Lq Wq Server
Custoemr

System
15 minutes
Ws Wq+1/Mu
Ls
Po
 Project Schedule Year
VidPhone X70 1 2 3 4
Development
Ramp-up
Marketing and support
Production Volume
Unit Production Cost
Production Costs
Sales Volume
Unit Price
Sales Revenue
Period Cash Flow
PV year 1 r=12%
Project NPV
5

40
8
 Project Schedule Year
VidPhone X70 1 2 3 4
Development
Ramp-up
Marketing and support
Production Volume
Unit Production Cost
Production Costs
Sales Volume
Unit Price
Sales Revenue
Period Cash Flow
PV year 1 r=12%
Project NPV
5
 Project Schedule Year
VidPhone X70 1 2 3 4
Development
Ramp-up
Marketing and support
Production Volume
Unit Production Cost
Production Costs
Sales Volume
Unit Price
Sales Revenue
Period Cash Flow
PV year 1 r=12%
Project NPV
5
 Project Schedule Year
VidPhone X70 1 2 3 4
Development
Ramp-up
Marketing and support
Production Volume
Unit Production Cost
Production Costs
Sales Volume
Unit Price
Sales Revenue
Period Cash Flow
PV year 1 r=12%
Project NPV