Explain minimize the store''s total expected cost, Operation Management

Assignment Help:

Solve the following problem for the optimal number of clerks:

There are approximately 300 customers shopping in Fackert Department Store in Mexico City between 9 a.m. and 5 p.m. on Saturdays. All those entering the store will make purchases. When deciding how many cash registers to keep open each Saturday, owner Susanna Fackert considers 2 factors: customer waiting time (and the associated waiting cost) and the service costs of employing additional checkout clerks. Checkout clerks are paid an average of $4 per hour. When only 1 is on duty, the waiting time to checkout per customer is about 10 minutes (or 1/6 of an hour); when 2 clerks are on duty, average waiting time is 6 minutes per person; 4 minutes when 3 clerks are working; and 3 minutes with 4 clerks.

Ms. Fackert has conducted customer satisfaction surveys and has been able to estimate that the store suffers approximately $5 in lost sales and goodwill for every hour of customer time spent in line waiting to checkout. Using the information provided, determine the optimal number of clerks to have on duty each Saturday in order to minimize the store's total expected cost


Related Discussions:- Explain minimize the store''s total expected cost

Describe database administrator for the itunes store, If you were the datab...

If you were the database administrator for the iTunes store, how might you use predictive analysis to determine which artists and movies will sell most next year?

Describe case studies with ethnographic research, 1. What benefits can be g...

1. What benefits can be gained from case studies? What dangers, if any, are there in using case studies? In what ways are they useful? Support your answers. 2. Provide some exam

Explain discussion maker acted unfairly in this situation, Why do think the...

Why do think the discussion maker acted unfairly in this situation?

Explain what is economic justification for the rapid growth, What is the ec...

What is the economic justification for the rapid growth of premium package services?

Explain complete the forward and backward pass, You are creating a customer...

You are creating a customer database for Winston-Salem Warthogs minor league baseball team. Draw a project network given the information below. Complete the forward and backward pa

Explain functions and objectives of trade unions, Explain functions and obj...

Explain functions and objectives of trade unions. Functions and Objectives of Trade Unions: The functions of trade unions are: (i) The provision of friendly services which

Product /management, Define Product Management,functions of Product managem...

Define Product Management,functions of Product management

Explain disadvantages of the entry mode, 3. You are the Director ...

3. You are the Director of International Development for a company that supplies technology to law enforcement agencies in the detection of crime. You have developed mar

Explain kinds of skills needed by service workers, How does the degree of c...

How does the degree of customer contact relate to the kinds of skills needed by service workers and the degree of training they require?

Productivity, what is operation management in terms of productivity

what is operation management in terms of productivity

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd