Service costs of employing additional checkout clerks

Assignment Help Operation Management

Reference no: EM131039774

There are approximately 300 customers shopping in Fackert department store in mexico city between 9am and 5pm on Saturdays. When deciding how many cash registers to keep open each saturday, owner Susanna Fackert considers 2 factors; customers waiting time(and the associated waiting cost) and the service costs of employing additional checkout clerks. Checkout clerks are paid an average of $4 per hour. When only 1 is on duty, the waiting time per customer is about 10 minutes (or 1/6 of an hour). When 2 clerks are on duty, average checkout time is 6 minutes per person. when 3 clerks are working, 4 miutes; and 3 minutes with 4 clerks.

Ms. Fackert has conducted customer satisfaction surveys and has been able to estimate that the store suffers approximately $5 in lost sales and goodwill for every hour of customer time spent waiting in checkout lines.

A) The total expected cost with 1 clerk is $

B) The total expected cost with 2 clerks is $

C) The total expected cost with 3 clerks is $

D) The total expected cost with 4 clerks is $

E) The optimal number of clerks to have on duty each saturday in order to minimize the store's total expected cost is ----- clerks?

Reference no: EM131039774

Questions Cloud

Implement hr analytics : What are some reasons that more organizations do not implement HR analytics? How would you make the case for adopting HR analytics?

How much added workers compensation risk : Franco Chen, a production foreman for Acme Machine Company, was discussing an unusual situation with Bill Johnson, a line supervisor. "Bill, I've got a bit of a problem. That new applicant for the number 7 drill press job seems to be just the person ..

Various reimbursement methodologies : For this assignment, you will be reviewing revenue cycle management and the various reimbursement methodologies that may affect the facility's or the provider's bottom line. Complete the following:

Member countries of regional organization : Q. 1. Describe the member countries of each regional organization? Q. 2. Define the common border of member countries (Like Pakistan has a common Border with Afghanistan, Iran, China, and India)?

Service costs of employing additional checkout clerks : There are approximately 300 customers shopping in Fackert department store in mexico city between 9am and 5pm on Saturdays. When deciding how many cash registers to keep open each saturday, owner Susanna Fackert considers 2 factors; customers waiting..

Discuss how the cost of engraving the model 92 fs handgun : From the perspective of Beretta International, identify the direct and indirect costs of operating the Beretta USA facility. Discuss which of these costs would be relevant to Beretta International if it wanted to measure the efficiency of the Bere..

Training methods-role play-job rotation-mentoring : Choose a job you are familiar with and, using information in Chapter 8, design a training system for employees. Focus particularly on the training methods you wish to use: role play, job rotation, mentoring, etc. Assume that you are a consultant for ..

Training and development in small businesses : State the problem, your method of finding the answer (literature review), what you found, and your conclusions. This is written after the paper so it is in the past tense. No more than 250 words.

Ethical practices to prevent fraud and abuse : In your post, critique legal and ethical practices to prevent fraud and abuse. Have the practices been effective in reducing or preventing fraud and abuse? How does fraud and abuse impact the costs of healthcare?

User Account

All Pages