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

Describe what would be the total number of workers, In the precedence chart...

In the precedence chart to the right, times are in seconds. 1 Assume that the plant runs one 7.5 hour shift per day and the assembly line is designed with 5 stations (one worker pe

Explain organizational structure, Analyze the reason for the type of organi...

Analyze the reason for the type of organizational structure employed by the organization, and identify the key positions that support that organizational structure.

Emba, How many stamping machines are required?

How many stamping machines are required?

Linear programming problem, Explain the graphical method of solving Linear ...

Explain the graphical method of solving Linear Programming Problem

Explain family medical leave act, Bella, a single mother, worked for one of...

Bella, a single mother, worked for one of Casper's Burger King Restaurants, where she had a record of perfect attendance. One Saturday, her three-year old son awoke with a high fev

Was due process denied describe, A state statute empowered public school pr...

A state statute empowered public school principals to suspend students for up to ten days without any notice or hearing. A student who was suspended for ten days challenges the con

Devise a regression equation and predict the profitability, Consider the ta...

Consider the table below. This time, the historical profitability of eight locations is listed in the table. Devise a regression equation and predict the profitability of a new sit

Industrial society - operations function, Industrial Society - Operations F...

Industrial Society - Operations Function In the industrial society, estimated during the period of growth of industrialisation roughly 1820-1920, machines and the production o

Explain processing time per claim, Medical Solutions, Inc. has the followin...

Medical Solutions, Inc. has the following claims it must complete in the next week (40 hours). The jobs are as follows: Claim Type Number of Claims to Process Setup (Changeover) Ti

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