Explain minimize the store''s total expected cost, Operation Management

Assignment Help:

Solve the following problem for the optimal number of clerks:

There are approximately 300 customers shopping in Fackert Department Store in Mexico City between 9 a.m. and 5 p.m. on Saturdays. All those entering the store will make purchases. When deciding how many cash registers to keep open each Saturday, owner Susanna Fackert considers 2 factors: customer 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 to checkout per customer is about 10 minutes (or 1/6 of an hour); when 2 clerks are on duty, average waiting time is 6 minutes per person; 4 minutes when 3 clerks are working; 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 in line waiting to checkout. Using the information provided, determine the optimal number of clerks to have on duty each Saturday in order to minimize the store's total expected cost


Related Discussions:- Explain minimize the store''s total expected cost

Discuss factors that can rise complexity of the information, Identify and d...

Identify and discuss factors that can increase the size and complexity of the information system structure (beyond those discussed in the text). •Make at least three recommendation

Depict serializability graphs, Draw serializability (precedence) graphs for...

Draw serializability (precedence) graphs for the following schedules and state whether each schedule is (conflict) serializable. For each serializable schedule, determine the equiv

Explain individual incentives used by organizations, Give examples of indiv...

Give examples of individual incentives used by organizations, why these are or are not successful?

Compute the total relevant cost associated with the eoq, The local technolo...

The local technology store WiredIn hired you to manage their inventory, which consists of 2 products configurations, type L and type J. Below are the data for the products. The hol

Environmental forces, Aska) what types of strategic plans must wild west ma...

Aska) what types of strategic plans must wild west make? Is the "doing-nothing" viable? If Wild west''s mission appears too broad, which business would you trim first? b) what env

Explain actual and forcasted demand level, The following are monthly actual...

The following are monthly actual and forcasted demand level for may through December for units of product manufactured by N. Month Actual demand Forecast demand May 100 102

Productivity measurement in organisations, Productivity Measurement In...

Productivity Measurement In Productivity measurement, we identify the factors affecting productivity and divide them into two major categories: external and internal. We ident

Describe two methods for allocating cost analysis, Explain two methods for ...

Explain two methods for allocating costs. Justify why you selected them and how you would make the most use of them in cost analysis.

Explain important terms of the factories act 1948, Explain important Terms ...

Explain important Terms of the factories act 1948. Important Terms of act: (a) Factory:  A place wherein ten or more persons are working and wherein a manufacturin

Describe the history of welfare reform, Discuss the history of welfare refo...

Discuss the history of welfare reform. Discuss some of the historical aspects and your opinion about how these changes were implemented and whether or not the changes were effectiv

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd