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

Explain why should be performed before signing a contract, What due diligen...

What due diligence should be performed before signing a contract?

Define what is the time between orders, Hottenstein, Griffith, and Hult, at...

Hottenstein, Griffith, and Hult, attorneys at law, do a great deal of printing. The firm uses a single type of printer with annual demand for print cartridges of 480 per year. The

What steps must to be taken to maximize the sales-price, Identify key gaps ...

Identify key gaps in planning for the exit. Provide recommendations on the exit strategy. Is the sale the right one? What steps ought to be taken to maximize the sales-price? What

Developing a service strategy - operations strategy, Developing a Service S...

Developing a Service Strategy - Operations Strategy The figure below gives an outline of the three steps of developing an operations strategy based on the Platts-Gregory appro

Scheduling, external factors affecting schedulling

external factors affecting schedulling

Explain the communication process used by managers, What should a manager d...

What should a manager do with someone who has high job satisfaction but is a low performer? Describe the communication process used by managers.

Explain major strategic operational competitive dimension, Which of the fol...

Which of the following is not a major strategic operational competitive dimension that forms a company's competitive position?

Objectives to draw the differing expectations of club member, Q1 Evaluate t...

Q1 Evaluate the service to club members and casual flyers by completing a table similar to Table 3.1. Q2 Chart the five performance objectives to show the differing expectations

Explain how is the search industry changing, How is the search industry cha...

How is the search industry changing? What forces seem most likely to bring about major change to the industry within the next three to five years?

Political risk for an organisation, Identify, with examples, groups that ma...

Identify, with examples, groups that may represent a significant political risk for an organisation that is considering engaging in Foreign Direct Investment.  When companies a

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