Calculate the maximum hourly rate, Basic Statistics

Assignment Help:

Question:

Sharp Discounts Wholesale Club has two service desks with one server at each desk.  There is one desk at each entrance of the store.  Customers arrive at each service desk at an average of one every six minutes following a Poisson distribution.  The average service time at each service desk is 216 seconds per customer following the exponential service distribution.

a)  How many customers, on average, are waiting in line in front of each service desk?

b)  How much total time does a customer spend at the service desk either waiting for help or receiving help?

c)  Looking at only one of the service desks, what is the probability that there are at least three customers waiting in line when the next individual arrives at this service desk?

d) Sharp is now considering consolidating its two service desks into one location, staffed by two clerks.  The clerks will continue to work at the same individual speed of 216 seconds per customer. 

  • How many customers, on average, are waiting in line?
  • How much total time does a customer spend at the service desk?

 

e)  Do you think the Sharp Discounts Wholesale Club should consolidate the service desks?  Explain and your discussion must consider both the economics and the customer service aspects of this waiting line operation.  There would be no extra cost for moving the two operations to one operation.  The clerks would continue to be paid the same as they were paid at the single desk operation.

f)  Suppose that it is no longer required that the clerks be paid the same under either operation.  The clerks under the consolidated operation are each paid $30 per hour and the estimated cost to Sharp for time a customer is at the service desk either waiting or being helped is $1 per minute.  What is the maximum hourly rate that each of the clerks can be paid under the two service desk operation so that the total cost of the operation is the same for either arrangement. Assume that there is no cost for consolidating the service.


Related Discussions:- Calculate the maximum hourly rate

Assignment, An experiment succeeds twice as often as it fails. Find the cha...

An experiment succeeds twice as often as it fails. Find the chance that in the next six trials there will be at least four successes

Joint probability, Two construction contracts are to be randomly assigned t...

Two construction contracts are to be randomly assigned to one or more of three firms. Numbering the firms I, II, and III, let X1 be the number of contracts assigned to firm I, and

Probability, If there are 12 numbered balls in a basket (0-11), and you get...

If there are 12 numbered balls in a basket (0-11), and you get 6 chances to pick a ball what are the odds to get two of the same number, 3 of the same number, 4, 5 and 6. I would

material costing and control, summarize chapter 2 in three pages, material...

summarize chapter 2 in three pages, material costing and control

Find the probability that a cup of drink chosen at random, Question: (i...

Question: (i) A soft drink machine is regulated so that it fills an average of 300 cL per cup. If the amount of drink in each cup is normally distributed with standard deviati

X2 test uses, The  χ 2  test is one of the most popular statistical infe...

The  χ 2  test is one of the most popular statistical inference procedures today. It is applicable to a very large number of problems in practice which can be summed up under th

Type of correlation, Which type of correlation would be appropriate to calc...

Which type of correlation would be appropriate to calculate for the each of the following sets of data? A.   Correlating gender and year in college (freshman, sophomore, junior,

Impulse-momentum theorem, Impulse and Momentum Theorem   Impulse is known...

Impulse and Momentum Theorem   Impulse is known as the change in momentum of any object:  j  = Δ p   Momentum  is a product of the mass & the velocity of an object, and is a v

Business Research Report Proposal: Initial Research, The initial research p...

The initial research proposal will consist of the following SIX (6) items: 1. Identify a business research topic 2. Define the research questions for the identified problem or opp

Calculate the expected value, Imagine you are faced with the opportunity to...

Imagine you are faced with the opportunity to play two coin flips, in which you get to call heads or tails prior to the flip of a fair, two-sided coin.  (That is, heads and tails h

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