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

Compute the total annual cost, A local nursery, Greens, uses 2184 bags of p...

A local nursery, Greens, uses 2184 bags of plant food annually. Greens works 52 weeks per year. It costs $8 to place an order for plant food. The annual holding cost rate is $2 per

Explain what are average weekly total costs, Given the following data for a...

Given the following data for a particular inventory item: Usage 500 units/week Ordering $40 per order Carrying Cost $.01 per unit per week Lead Time 3 weeks Price $.50 per unit a.

Explain decisions subject to risk and uncertainty, To what extent are these...

To what extent are these decisions subject to risk and uncertainty?

Travael chart, I want some project about travel chart.

I want some project about travel chart.

Explain what the average inventory be for this lot size, 1.What would the a...

1.What would the average inventory be for this lot size? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.) 2. Determine th

Describe communication skills, From the scenarios, we see that Chris and Er...

From the scenarios, we see that Chris and Erica have different communication styles that could potentially have a negative impact on the business. Suggest at least two strategies t

Explain challenge facing law enforcement agencies, Explain in detail the gr...

Explain in detail the greatest challenge facing law enforcement agencies in investigating exploitation, cyber stalking, and obscenity. Identify the specific challenges with overlap

Product layout., define the following key terms in product layout; product...

define the following key terms in product layout; product interval time, product duration, assembly line balancing

Explain primary causes of information management, Analyze the primary cause...

Analyze the primary causes of information management / information technology project failures and recommend at least three (3) best practices that could be adopted by any organiza

Explain planning is the fundamental management function, 1. Planning is the...

1. Planning is the fundamental management function. Discuss how organizing and planning are related. 2. Using two examples, describe the different approaches used by companies/m

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