Problem 1.

(15)
An M/M/3/5/- queuing system has arrival rate of 10 customers per hour, and the service rate of each
server is 4 customers per hour. The steady state probabilities of different states are given below.
0 1 2 3 4 5
0.08 0.19 0.24 0.20 0.16 0.14
a) Waiting time (in queue) of a customer is valued at Rs. 100 per hour, and the opportunity cost of a
lost customer is Rs. 1000. Hourly cost of each server is Rs. 200. Compute the average hourly cost of
this system.
b) Compute the average utilization of servers.
c) If the number of servers is increased by one, keeping the system size unchanged at 5, the state
probabilities will change as follows:
0 1 2 3 4 5
0.08 0.21 0.26 0.22 0.14 0.09
Would you recommend increasing the number of servers? If yes, report the resulting savings in total cost.