Should agan expand to the two-consultant system

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Reference no: EM13918684

Refer to the Agan Interior Design situation in Problem 11. Agan's management would like to evaluate two alternatives:

• Use one consultant with an average service time of 8 minutes per customer.

• Expand to two consultants, each of whom has an average service time of 10 minutes per customer.

If the consultants are paid $16 per hour and the customer waiting time is valued at $25 per hour for waiting time prior to service, should Agan expand to the two-consultant system? Explain.

Text Book: An Introduction to Management Science: Quantitative Approaches to Decision. By David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Camm, James Cochran.

Reference no: EM13918684

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