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

What are the advantages of the level capacity strategy, What are the advant...

What are the advantages of the Level capacity strategy? The advantages of the Level capacity strategy: a. Employment of operational resources at all times. b. Efficient p

forecast of inflation, Aman work at the Bank, to help customers, including...

Aman work at the Bank, to help customers, including retired people, to plan for the future.  Often the value of pensions does not keep up with inflation.  Hence retired people requ

Explain external competitive policies and techniques, 1. How might a compan...

1. How might a company's business strategy affect the internal alignment policies and techniques of its Total Compensation system? 2. How might a company's business strategy affect

Explain hoosier burger context-level data-flow diagram, Using the book Esse...

Using the book Essentials of Sustem Analysis and Design Read the Hoosier Burger scenario on the text and address the following (you only need to complete parts a through c) in a

Current risk management, Ask question #Minimum 100 words accepted1. Outline...

Ask question #Minimum 100 words accepted1. Outline the purpose and key elements of current risk management standards

Layout, what are the objectives that an operation should seek in order to e...

what are the objectives that an operation should seek in order to ensure a good layout?

Global operations management, what are the key issues to be considered when...

what are the key issues to be considered when managing global management operations

Explain simple to state and very difficult to execute, The Assignment is at...

The Assignment is at the same time very simple to state and very difficult to execute. It is designed to allow you to use all the tools of strategy and analysis that you have learn

Process charts, Process Charts Process chart is the diagrammatic repr...

Process Charts Process chart is the diagrammatic representation of various tasks and activities in sequence of operation passing through the production process beginning with

Evaluate the team''s performance, Question: CASE STUDY You have been...

Question: CASE STUDY You have been newly appointed as team leader of a Management department consisting of 5 team members. The team has not been performing well in the pa

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