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

Hom, (A) Find the binomial probability P(x = 5), where n = 15 and p = 0.50....

(A) Find the binomial probability P(x = 5), where n = 15 and p = 0.50. (B) Set up, without solving, the binomial probability P(x is at most 5) using probability notation. (C) H

Linear modelling, what is a difference between a linear model and a linear ...

what is a difference between a linear model and a linear model

Describe the assumptions conducting test, Conduct a test to determine if th...

Conduct a test to determine if the proportion of males that responded true to the statement in the survey that, "Whole foods (i.e. raw vegetables and meats) contain sodium," is dif

Two hanging masses, Two blocks with masses and hang one under the other. ...

Two blocks with masses and hang one under the other. For this problem, take the positive direction to be upward, and use for the magnitude of the acceleration due to gravity. Fi

Index numbers, discuss the considerations to be borne in mind when construc...

discuss the considerations to be borne in mind when constructing index numbers

Homework, The probability a computer will boot is .08. What is the least nu...

The probability a computer will boot is .08. What is the least number needed so that the probability at least two will boot is greater than .99?

conversion process from gaap to ifrs, When do you think the conversion pro...

When do you think the conversion process should start? Manager 1 : The conversion process from GAAP to IFRS will be a big challenge. There are a lot of differences between the

Index numbers, what isweight and why is it necerary to calculate its index ...

what isweight and why is it necerary to calculate its index numbet

Qualitative survey and data analysis, Data Analysis: A qualitative surve...

Data Analysis: A qualitative survey was conducted in order to understand the impact of international accounting standards. To start with, a secondary research was done to unders

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