The formula to calculate the average waiting time (W) is:
\[ W = \frac{1}{\mu - \lambda} \times 60 \]
Where:
Let's say the service rate is 10 customers per hour, and the arrival rate is 8 customers per hour. Using the formula:
\[ W = \frac{1}{10 - 8} \times 60 \]
We get:
\[ W = \frac{1}{2} \times 60 = 30 \]
So, the average waiting time (\( W \)) is 30 minutes.
Waiting time is the average time a customer spends waiting in the system before being serviced. It is a key performance indicator in service industries and is used to assess the efficiency of service delivery. A lower waiting time generally indicates a more efficient system with sufficient capacity to handle the incoming customer flow.