Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 . An interior design company provides home and office decorating assistance to its customers. In normal operation, an average of 2 . 5 customers

1. An interior design company provides home and office decorating assistance to its customers. In normal operation, an average of 2.5 customers arrive each hour. One design consultant is available to answer customer questions and make product recommendations. The consultant averages 10 minutes with each customer.
a. Find the average number of customers waiting in the system.
b. Find the average time a customer spends in the system.
c. Service goals dictate that an arriving customer should not wait for service more than an average of 5 minutes. Is this goal being met? Justify.
d. If the consultant can reduce the average time spent per customer to 8 minutes, what is the mean service rate? Will the service goal be met?
e. Suppose the company has the following alternatives:
(i) Use one consultant with an average service time of 8 minutes per customer.
(ii) Expand to 2 consultants, each of whom has an average service time of 10 minutes per customer. If the consultants are paid $3 per hour and the customer waiting time is valued at $25 per hour for waiting time prior to service, should the company expand to the two-consultant system? Justify.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project Management A Managerial Approach

Authors: Jack R. Meredith, Samuel J. Mantel,

7th Edition

470226218, 978-0470226216

More Books

Students also viewed these General Management questions