What is the expected time person spends waiting in line

Assignment Help Operation Management

Reference no: EM131119193

A new shopping mall is considering setting up an information desk manned by one employee. Based upon information obtained from similar information desks, it is believed that people will arrive at the desk at a rate of 20 per hour. It takes an average of 2 minutes to answer a question. It is assumed that the arrivals follow a Poisson distribution and answer times are exponentially distributed.

Assume that the information desk employee earns $10 per hour. The cost of waiting time, in terms of customer unhappiness with the mall, is $12 per hour of time spent waiting in line. Assume there is an 8-hour day. Answer the following questions. Step by step how to do?

What is the utilization of the desk employee?

What is the total number of arrivals per day?

What is the expected time a person spends waiting in line?

What is the total waiting time per day?

What is the total cost for waiting per day?

What is the total cost (salary + waiting cost) per day?

Reference no: EM131119193

Questions Cloud

Measuring the number of unsatisfied delivery customers : A local newspaper has been measuring the number of unsatisfied delivery customers for the past few weeks utilizing a survey. Below is a table with the number of unsatisfied customers for the past 4 weeks. Using a confidence interval of two standard d..

For what reasons should the percentage of completion method : For what reasons should the percentage-of-completion method be used over the completed-contract method whenever possible?

Replace the existing process with the new process : Crunchy Potato Chip Company packages potato chips in a process designed for 10 oz of chips. The weight of the bag cannot be more than ± 0.5 from the process mean. You have just designed a new process for filling the chip bags. The new process results..

How much revenue and gross profit should hawkins recognize : Hawkins Construction Co. appropriately uses the percentage-of completion method. How much revenue and gross profit should Hawkins recognize in the first year of the project?

What is the expected time person spends waiting in line : A new shopping mall is considering setting up an information desk manned by one employee. Based upon information obtained from similar information desks, It is assumed that the arrivals follow a Poisson distribution and answer times are exponentially..

Discuss the appropriateness of the revenue recognition : Discuss the appropriateness of the revenue recognition techniques employed by CN for recognizing freight revenues.

What are the two basic methods of accounting for long term : What are the two basic methods of accounting for long-term construction contracts?

Object-oriented analysis and design methodologies : How does object-oriented analysis and design (OOAD) methodologies compare to the traditional structured analysis and design methodologies covered earlier in the book?

Discuss the criteria used to recognize revenue for each type : Sapient recognizes revenues based on the provisions of the written service contracts generated for each client. The primary types of contracts are (1) Fixed-price, fixed-time contracts; (2) Support and maintenance contracts; and (3) Performance stand..

User Account

All Pages