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 making better business decision, Making Better Business Decision: ...

Making Better Business Decision: Do you provide the quizzes/exams questions for this book? **You didn't answer my questions a Yes or No would have been sufficient. Please answer th

Success of change initiatives is why many initiatives fail, Failure to anti...

Failure to anticipate and mitigate circumstances that might impede the success of change initiatives is why so many initiatives fail. From a business managers perspective, what doe

Explain activity would be reduced, You will find that some resources are la...

You will find that some resources are labor-based while others are not. For example, let's say you had one person initially scheduled for a job and it was going to take ten days. L

Functions of work measurement, Functions of work Measurement: 1.      ...

Functions of work Measurement: 1.       To analyze  the operations  and to evaluate them  in terms  of time  from the  point  of view  of  controlling  the activity. 2.

Explain about changing the layout of empty cubicles, Is there an optimal si...

Is there an optimal size for all organizations? Also how should one go about changing the layout of empty cubicles?

Explain valuing health care, Valuing Health Care" Please respond to the fol...

Valuing Health Care" Please respond to the following: •Determine the best way to leverage value from health IM / IT investments in today's health care environment. Provide specific

The abc system, The ABC system is a method of  Managing inventory.

The ABC system is a method of  Managing inventory.

Explain the e-activity, "Big Box" Please respond to the following: •From th...

"Big Box" Please respond to the following: •From the video, determine if it is the responsibility of an organization to pay its workers a "living wage." Explain your rationale. •Fr

Emba, How many stamping machines are required?

How many stamping machines are required?

Describe the main sources of destructive fires, Identify and explain the ma...

Identify and explain the main sources of destructive fires and associated preventive measures.

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