Homework Help is Here – Start Your Trial Now!
Business
Operations Management
Economic Analysis of Waiting Line systems The advertising campaign for Mark's Coffee Shop doubled their business. The mean rate of orders arriving is 40 per hour and they must decide how many servers to hire. Each server can process an order in an average time of 2 minutes. They have determined the average waiting cost per minute for an order to be $.50. Servers hired will earn $20 per hour in wages. o) Using this information compare the total hourly cost of hiring 2 servers with that of hiring 3 servers.

Economic Analysis of Waiting Line systems The advertising campaign for Mark's Coffee Shop doubled their business. The mean rate of orders arriving is 40 per hour and they must decide how many servers to hire. Each server can process an order in an average time of 2 minutes. They have determined the average waiting cost per minute for an order to be $.50. Servers hired will earn $20 per hour in wages. o) Using this information compare the total hourly cost of hiring 2 servers with that of hiring 3 servers.

Practical Management Science
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...
See similar textbooks
icon
Related questions
Question

10

Economic Analysis of Waiting Line systems The advertising campaign for Mark's Coffee Shop doubled their business. The mean rate of orders arriving is 40 per hour and they must decide how many servers to hire. Each server can process an order in an average time of 2 minutes. They have determined the average waiting cost per minute for an order to be $.50. Servers hired will earn $20 per hour in wages. o) Using this information compare the total hourly cost of hiring 2 servers with that of hiring 3 servers. The answer is supposed to be $112.00 per hour for 2 servers and $104.35 per hour for 3 servers. Not sure how to get there though...
Transcribed Image Text:Economic Analysis of Waiting Line systems The advertising campaign for Mark's Coffee Shop doubled their business. The mean rate of orders arriving is 40 per hour and they must decide how many servers to hire. Each server can process an order in an average time of 2 minutes. They have determined the average waiting cost per minute for an order to be $.50. Servers hired will earn $20 per hour in wages. o) Using this information compare the total hourly cost of hiring 2 servers with that of hiring 3 servers. The answer is supposed to be $112.00 per hour for 2 servers and $104.35 per hour for 3 servers. Not sure how to get there though...
Expert Solution
steps

Step by step

Solved in 3 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS