Reference no: EM131672505

Question: Waiting time, cost considerations, customer satisfaction. Refer to the information presented in Exercise 19-25. The head of the registration advisors at SMU has decided that the advisors must finish their advising in 2 weeks (10 working days) and therefore must advise 420 students a day. However, the average waiting time given a 12-minute advising period will result in student complaints, as will reducing the average advising time to 10 minutes. SMU is considering two alternatives:

a. Hire two more advisors for the 2-week (10-working day) advising period. This will increase the available number of advisors to 12 and therefore lower the average waiting time.

b. Increase the number of days that the advisors will work during the 2-week registration period to 6 days a week. If SMU increases the number of days worked to 6 per week, then the 10 advisors need only see 350 students a day to advise all of the students in 2 weeks.

1. What would the average wait time be under alternative A and under alternative B?

2. If advisors earn $100 per day, which alternative would be cheaper for SMU (assume that if advisors work 6 days in a given workweek, they will be paid time and a half for the sixth day)?

3. From a student satisfaction point of view, which of the two alternatives would be preferred? Why?