A new shopping mall is considering setting up an information desk manned by one employee. Based upon information obtained from similar information desks, it is believed that people will arrive at the desk at a rate of 20 per hour. It takes an average of 2 minutes to answer a question. It is assumed that the arrivals follow a Poisson distribution and answer times are exponentially distributed. Required: (g) Assume that the information desk employee earns $10 per hour. The cost of waiting time, in terms of customer unhappiness with the mall, is $12 per hour of time spent waiting in line. Find the total expected costs over an 8-hour day.
A new shopping mall is considering setting up an information desk manned by one employee. Based upon information obtained from similar information desks, it is believed that people will arrive at the desk at a rate of 20 per hour. It takes an average of 2 minutes to answer a question. It is assumed that the arrivals follow a Poisson distribution and answer times are exponentially distributed. Required: (g) Assume that the information desk employee earns $10 per hour. The cost of waiting time, in terms of customer unhappiness with the mall, is $12 per hour of time spent waiting in line. Find the total expected costs over an 8-hour day.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A new shopping mall is considering setting up an information desk manned by one employee. Based upon information obtained from similar information desks, it is believed that people will arrive at the desk at a rate of 20 per hour. It takes an average of 2 minutes to answer a question. It is assumed that the arrivals follow a Poisson distribution and answer times are exponentially distributed.
Required:
(g) Assume that the information desk employee earns $10 per hour. The cost of waiting time, in terms of customer unhappiness with the mall, is $12 per hour of time spent waiting in line. Find the total expected costs over an 8-hour day.
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