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

Co-relation, Co-relation: Co-relation in this case studies the behavior how...

Co-relation: Co-relation in this case studies the behavior how each of the investment opportunity would react to any event vis – a vis each other. The same is measured in terms of

Quantitative methods, which method is better for new product to gather the ...

which method is better for new product to gather the information they need,primary data or secondary data?

Histogram and the boxplot, A study done at the University of Maryland (cite...

A study done at the University of Maryland (cited in Weiss, Introductory Statistics, 7th ed, 2005) measured the body temperatures of 93 healthy humans. On the frequency- histogram

State income tax, State income tax In most declares paycheck accounting...

State income tax In most declares paycheck accounting will involve a condition earnings tax. In those declares a company is necessary to hold the condition earnings tax that an

Numerical annalysis, the number x = 37.46235 is round off to four significa...

the number x = 37.46235 is round off to four significant figures. compute the absolute error

Regression line, regression line drawn as Y=c+1075x, when x was 2 and y was...

regression line drawn as Y=c+1075x, when x was 2 and y was 239, given that y intercept was 11. calculate the residual

Corlation, 1. Calculate Karl Pearson’s coefficient of correlation between e...

1. Calculate Karl Pearson’s coefficient of correlation between expenditure on advertising (X) and sales (Y) from the data given below: The management decided to stop further expens

Clipping, Clipping is one form of distortion that occurs when an amplifier ...

Clipping is one form of distortion that occurs when an amplifier is overdriven, which happens when it attempts to increase voltage or current beyond its limits. When an amplifier

Statistical hypotheses - anova, Your company operates a machine shop, and, ...

Your company operates a machine shop, and, having heard you had experience in statistics and design of experiments, consulted you for your opinion on an experiment they want to run

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