Estimate that the cost of customer waiting

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The local self-serve yogurt shop is looking to provide staffing to meet customer demand over the summer peak season. While the customers can self-serve the yogurt in the cups, a staff person is needed to add the toppings, weigh the yogurt, and process payment. The arrival rate is 30 per hour. The service rate is 16 per hour. There is a lot of competition in the area and customers will easily choose a different yogurt shop if they feel that they did not receive quick and superior customer service. The owners estimate that the cost of customer waiting is estimated at $25/hour per customer waiting and the cost of each counter server is $20 per hour, what is the optimal number of servers that should be working during the peak time? HINT: Use the Queueing.xls spreadsheet and show the cost analysis table for comparison.

Reference no: EM132739319

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