Shoprite is a busy centre forresidents in East Legon and its sourrounding community. Assume that2 customers arrive every 12 minutes and 3 customers are servedevery 15 minutes and that currently, there is only one cashier.

(i).Determine the average waiting timein minutes before service begins.

(ii). Advice the management theproportion of the time that a customer has to wait.

(B). Management perceives that the waiting time computed in (ii)above is not acceptable and is faced with two options.

Management can either employ an assistant for the cashier oropen a second cash machine.

The former, if implemented, will enable 4 requests to be servedevery 15 minutes and the assistant will receive a monthly salary ofGH₵160. The latter, if implemented will improve the arrival rate to1 customer every 12 minutes.

However, it requires an initial capital outlay of GH₵3000 andthe cashier who will operate the cash machine will receive amonthly salary of GH₵250. The shop avoids a loss in sales of GH₵80per month for each minutes that average customer waiting time isreduced.

(i). Calculate the financial gain to Shoprite under option 1 andadvice management on the option.

(ii). Calculate the financial gain to Shoprite under option 2,assuming the initial capital outlay is sunk cost and advicemanagement on this option.