Agan Interior Design provides home and office decorating assistance to its customers. In normal operation, an average of 2.7 customers arrive each hour. One design consultant is available to answer customer questions and make product recommendations. The consultant averages 10 minutes with each customer. (a) Compute the operating characteristics of the customer waiting line, assuming Poisson arrivals and exponential service times. (Round your answers to four decimal places. Report time in hours.) λ = q L = (b) Service goals dictate that an arriving customer should not wait for service more than an average of 5 minutes. Is this goal being met? (Round your answer to one decimal place.) W (in minutes) = [8.18 than the desired wait time, so the goal is not min, which is greater What action do you recommend? (Select all that apply.) Increase the hours of operation. Increase the mean service rate. There is no need to change the current operating parameters. Decrease the mean service rate. Hire another consultant. (c) If the consultant can reduce the average time spent per customer to 8 minutes, what is the mean service rate? (Round your answers to four decimal places. Report time in hours.) Will the service goal be met? (Round your answer to one decimal place.) Wq (in minutes) = Xmin, which is -Select-than the desired wait time, so the goal ---Select-- ✓ met.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Agan Interior Design provides home and office decorating assistance to its customers. In normal operation, an average of 2.7 customers arrive each hour. One design consultant is available to answer customer questions and make product recommendations. The consultant averages 10 minutes with each
customer.
(a) Compute the operating characteristics of the customer waiting line, assuming Poisson arrivals and exponential service times. (Round your answers to four decimal places. Report time in hours.)
λ =
q
L =
(b) Service goals dictate that an arriving customer should not wait for service more than an average of 5 minutes. Is this goal being met? (Round your answer to one decimal place.)
W (in minutes) = [8.18
than the desired wait time, so the goal is not
min, which is greater
What action do you recommend? (Select all that apply.)
Increase the hours of operation.
Increase the mean service rate.
There is no need to change the current operating parameters.
Decrease the mean service rate.
Hire another consultant.
(c) If the consultant can reduce the average time spent per customer to 8 minutes, what is the mean service rate? (Round your answers to four decimal places. Report time in hours.)
Will the service goal be met? (Round your answer to one decimal place.)
Wq (in minutes) =
Xmin, which is
-Select-than the desired wait time, so the goal ---Select-- ✓ met.
Transcribed Image Text:Agan Interior Design provides home and office decorating assistance to its customers. In normal operation, an average of 2.7 customers arrive each hour. One design consultant is available to answer customer questions and make product recommendations. The consultant averages 10 minutes with each customer. (a) Compute the operating characteristics of the customer waiting line, assuming Poisson arrivals and exponential service times. (Round your answers to four decimal places. Report time in hours.) λ = q L = (b) Service goals dictate that an arriving customer should not wait for service more than an average of 5 minutes. Is this goal being met? (Round your answer to one decimal place.) W (in minutes) = [8.18 than the desired wait time, so the goal is not min, which is greater What action do you recommend? (Select all that apply.) Increase the hours of operation. Increase the mean service rate. There is no need to change the current operating parameters. Decrease the mean service rate. Hire another consultant. (c) If the consultant can reduce the average time spent per customer to 8 minutes, what is the mean service rate? (Round your answers to four decimal places. Report time in hours.) Will the service goal be met? (Round your answer to one decimal place.) Wq (in minutes) = Xmin, which is -Select-than the desired wait time, so the goal ---Select-- ✓ met.
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