Compute operating characteristics of customer waiting line

Assignment Help Financial Management

Reference no: EM13809205

Agan Interior Design provides home and office decorating assistance to its customers. In normal operation, an average of 2.5 customers arrives 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 Poissonarrivals and exponential service times.

b. Service goals dictate that an arriving customer should not wait for service more than anaverage of 5 minutes. Is this goal being met? If not, what action do you recommend?

c. If the consultant can reduce the average time spent per customer to 8 minutes, what isthe mean service rate? Will the service goal be met?

Reference no: EM13809205

Questions Cloud

What is the size of each quarterly deposit : The parents of a girl are planning to finance her college education. They want to make 48 quarterly deposits (equal amounts) in an account, which pays interest at 9% compounded monthly. What is the size of each quarterly deposit?

Balance is immaterial-confirmations are deemed ineffective : Audit standards indicate that there is a presumption that auditors will confirm accounts receivable unless the balance is immaterial, confirmations are deemed ineffective, or the auditors' assessment of risk is low and other procedures will achieve t..

Calculate the payback-profitability index-net present value : Using a 4.5% discount rate, calculate the Net Present Value, Payback, Profitability Index, and IRR for each of the investment projects below

The maintenance costs for a certain machine : The maintenance costs for a certain machine are $1,600.00 per year for the first 6 years and $2,400.00 per year for the next 7 years. At a interest rate of 6% per year, the present worth of the maintenance is closest to? Show work using factors in th..

Compute operating characteristics of customer waiting line : Agan Interior Design provides home and office decorating assistance to its customers. In normal operation, an average of 2.5 customers arrives each hour. Compute the operating characteristics of the customer waiting line, assuming Poissonarrivals and..

Balance of the retained earnings at the beginning : The balance of the Retained Earnings at the beginning of the year was $950,000 and there were no dividends in arrears. Net income for 2015 was $980,000. What was the amount of dividend declared on each share of common stock during 2015?

What is its weighted average cost of capital : A company has 100 million shares outstanding trading for $8 per share. It also has $900 million in outstanding debt. If its equity cost of capital is 15%, and its debt cost of capital is 12%, and its effective corporate tax rate is 40%, what is its w..

What is operating cash flow : XY Windows has a projected sales volume of $2864 for the second year of a proposed expansion project. Costs normally run 60% of sales, (or about $1718.40 in this case) the depreciation expense will be $90 and tax rate is 34%. What is operating cash f..

What is before-tax cost of capital for this debt financing : Black Hill Inc. sells $100 million worth of 21-year to maturity 8.91% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $988 for each $1,000 bond. What is the before-tax cost of capital for this debt financing?

User Account

All Pages