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 important to understand the categorical imperative, Duty is the pri...

Duty is the primary view of this ethical position. It will be important to understand the categorical Imperative and that reason or rational thought must drive this theory. As you

20110907, I have already ordered and you all gave me a false link to the re...

I have already ordered and you all gave me a false link to the reference number above. I want my results now. And I want a refund for being late.

Kanban cards needed, A bottling plant fills 2,400 bottles every two hours. ...

A bottling plant fills 2,400 bottles every two hours. The lead time is 40 minutes and a container accommodates 120 bottles. The safety stock is 10 percent of expected demand. How m

Why the supply chain management such a topic of interest, Why is supply cha...

Why is supply chain management such a topic of interest lately, especially multifacility distribution?

Explain what appears to be the primary supply chain, What appears to be the...

What appears to be the primary "secret" of successful supply chain management?

Explain pipeline transportation system for treated water, The network in fi...

The network in figure below shows the pipeline transportation system for treated water from the treatment plant (node 1) to a city water supply system (node 14). The arc capacities

Management of change projects, Choose an Operations Management problem rela...

Choose an Operations Management problem relating to an organisation with which you are familiar and undertake a critical review. This should include (indicative marks provided):

Compute the overall proportion of tourists, A state department of tourism a...

A state department of tourism and recreation collects data on the number of cars with out-of-state license plates in a state park. (The group's position is that more out-of-state p

Explain statistical process control, Which one of the following is NOT one ...

Which one of the following is NOT one of the basic elements of the strategic management process A. Strategy formulation B. Strategy implementation C. Statistical process control D.

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