Use an m/m/s queueing model

Reference no: EM131106071

The manager of a bank wants to use an M/M/s queueing model to weigh the costs of extra tellers against the cost of having customers wait in line. The arrival rate is 60 customers per hour, and the average service time is four minutes. The cost of each teller is easy to gauge at the $11.50 per hour wage rate. However, because estimating the cost per minute of waiting time is difficult, the bank manager decides to hire the minimum number of tellers so that a typical customer has probability 0.05 of waiting more than five minutes in line.

a. How many tellers will the manager use, given this criterion?

b. By deciding on this many tellers as "optimal," the manager is implicitly using some value (or some range of values) for the cost per minute of waiting time. That is, a certain cost (or cost range) would lead to the same number of tellers as suggested in part a. What is this implied cost (or cost range)?

Reference no: EM131106071

Questions Cloud

What sources of law would have created : Based on your own experiences, the video, or a news story, relate a time when you believe that the law affected a business. Describe the events, the law, and how the court did or should resolve your example. What sources of law would have created ..

Customers arrive per hour at gotham city bank : On average, 100 customers arrive per hour at Gotham City Bank. It takes a teller an average of two minutes to serve a customer. Interarrival and service times are exponentially distributed.

Problem regarding the fibonacci numbers : The Fibonacci sequence is given by : 0, 1, 1, 2, 3, 5, 8, 13, 21, ..... By definition the Fibonacci sequence starts at 0 and 1 and each subsequent number is the sum of the previous two. In mathematical terms, the sequence Fn of Fibonacci number is..

Hyasaki corporation has the following account balances : 1. At December 31, 2011, Hyasaki Corporation has the following account balances:

Use an m/m/s queueing model : The manager of a bank wants to use an M/M/s queueing model to weigh the costs of extra tellers against the cost of having customers wait in line. The arrival rate is 60 customers per hour, and the average service time is four minutes.

What would the potential consequences be for your decision : Write a minimum of 2 paragraphs explaining whether or not you would return the gun to the defendant. Justify your answer based on sound moral judgment, values, and consequences of actions, using an ethical decision-making process. What would the p..

Benefits associated with microsoft : Cite at least two benefits associated with Microsoft's .NET and Passport services.

Create a file that contains your favorite movie quote : To discover a file's size, you can create a System.IO.FileInfo object using a statement such as the following, where FILE_NAME is a string that contains the name of the file:

User Account

All Pages