A direct channel appears to be better than an indirect channel when after-sale service is important

Give an example of a firm whose core service location is severely limited

What will be an ideal response?

A dry cleaner has a single drive-thru window for customers. The arrival rate of cars follows a Poisson distribution, while the service time follows an exponential distribution

The average arrival rate is 16 per hour and the average service time is three minutes. (a) What is the average number of cars in the line? (b) What is the average time spent waiting to get to the service window? (c) What percentage of time is the dry cleaner's drive-thru window idle? (d) What is the probability there are more than 2 cars at the drive-thru window?