What is the total hourly cost including cost of operators

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Increased traffic and fierce competition have forced X airlines to re examine the efficiency and economy of its operations. As a part of a campaign to improve customer service in a cost-effective manner, X has focused on passenger check-in facilities at the main airport. For best utilization of its check-in facilities Xoperates a common check-in process, passengers for all X flights queue up in a single line and each can be served at any one of the several clerks become available. arrival rate is estimated at an average of 52 passengers per hour. During the check-in process, an agent confirms the reservation, assigns a seat, issues a boarding pass, and weighs, labels, and dispatches baggage. The entire process takes an average of 3 minutes. Agents are paid $20 per hour and X’s customer relations department estimates that for every minute a customer spends waiting in line, X loses $1 in missed flights, customer dissatisfaction, and future business. a- What is the minimum number of agents required to have a feasible operation? b- If X operates with the bare minimum number of operators, what is the expected number of customers waiting for check-in? How long do they wait in the line on the average? c-What is the total hourly cost including the cost of operators and waiting? d- Would you recommend adding one more agent to X?

Reference no: EM131037498

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